Powell says rates to be cut this year, US dollar falls; gold prices rise, hit new highs.

On Wednesday (March 6th), the US dollar index maintained a volatile trend in the Asian and European markets. However, due to Powell's announcement on Capitol Hill that interest rates will be lowered later this year, the US dollar index continued to weaken and ultimately closed down 0.398% at 103.37. The benchmark 10-year Treasury yield closed at 4.1078%, while the 2-year Treasury yield, which is most sensitive to the Federal Reserve's policy rate, closed at 4.562%.

Economic data and the speech of Federal Reserve Chairman Powell have strengthened market expectations for this year's interest rate cut. The US dollar index fell to a new low in over a month, and gold prices continued to rise on Wednesday (March 6), reaching a historic high of $2,152.11 per ounce and closing at $2,147.88 per ounce, up about 0.95%, marking six consecutive trading days of gains.

Oil prices rose by about 1% on Wednesday (March 6th) due to lower than expected increases in US crude oil inventories, significant reductions in distillate and gasoline inventories, and the Federal Reserve Chairman's statement that he still expects interest rate cuts this year. In addition, Saudi Arabia's unexpected increase in official crude oil prices for Asia has also boosted market sentiment.

On March 6th, the US dollar weakened against a basket of currencies, and the US dollar index fell in the overnight market. The decline widened in the morning and narrowed in the afternoon, with the US dollar index falling by the end of the day. The US dollar index, which measures the US dollar against six major currencies, fell 0.41% in the day and closed at 103.370 at the end of the foreign exchange market.