Dollar Slips as Intel Selloff Rattles US Tech Confidence

The dollar edged lower as geopolitical unease around US Arctic policy and shifting global positioning weighed on sentiment. US equities were mixed after Intel shares plunged sharply in after-hours trading, raising concerns about strains in the chip supply chain. Asian equities posted gains, while the yen held firm after the Bank of Japan nudged up inflation forecasts without fully committing to imminent tightening. China signalled tolerance for a stronger yuan by setting firmer official guidance.

Equities

The FTSE 100 closed slightly higher on Thursday, ending the session up 0.1% as calmer political signals from Washington helped steady sentiment. Gains were more pronounced among domestically focused shares, with the FTSE 250 rising 1.3% to a three-year closing high after recovering from earlier losses this week. The move came as investors reacted to a softer US stance on Greenland and renewed hopes of progress towards a Ukraine peace agreement.

Among individual UK stocks, Computacenter shares jumped late on Thursday, closing around 10% higher after the IT services group issued an upbeat profit outlook, pointing to resilient demand across its core markets. Senior climbed 8.7% by the close after the engineering firm raised its annual profit forecast for the second time in two months, citing stronger trading momentum. AJ Bell ended the session 3.7% higher after the investment platform reported a sharp rise in quarterly inflows, highlighting continued retail investor activity. Media stocks also provided support, with Future up nearly 6% after announcing the acquisition of Sheerluxe. Shares in Wizz Air surged 9%, while Ferrexpo rallied more than 13%, following comments from Ukraine’s president pointing to fresh diplomatic talks involving the US.

In contrast, heavyweight energy stocks weighed on the main index as oil prices fell earlier in the day, while precious metal miners moved higher alongside rising gold prices. UK government data released on Thursday showed lower-than-expected borrowing in December, adding a supportive domestic backdrop.

In the US, Wall Street finished higher on Thursday evening, marking a second consecutive day of gains. The S&P 500 closed up 0.55%, the Dow Jones Industrial Average rose 0.63%, and the Nasdaq gained 0.91%, helped by relief after President Donald Trump stepped back from tariff threats against Europe. The rebound followed a sharp sell-off earlier in the week, although the main indices remain lower over the week as a whole.

Large technology stocks led the advance, with Meta shares closing nearly 6% higher and Tesla ending the session up just over 4%. In contrast, Abbott Laboratories fell 10% on Thursday, its steepest one-day drop in decades, after issuing a weaker-than-expected outlook. GE Aerospace closed more than 7% lower despite forecasting annual profit above expectations, while McCormick dropped over 8% after warning about higher costs. Procter & Gamble added 2.6% by the close following its results, while Intel edged slightly higher during regular trading, ahead of a sharper move later in after-hours dealings.

Forex & Commodities

The Japanese yen remained under pressure after the Bank of Japan kept interest rates unchanged, with the currency trading down at ¥158.5 per dollar following the decision. The central bank lifted its growth and inflation forecasts, reinforcing expectations that borrowing costs will rise further later this year, but traders focused on the lack of urgency in the policy message. Attention has since shifted to comments from Governor Kazuo Ueda for clues on the timing of the next move, particularly with the yen still close to levels that previously prompted official warnings from Tokyo.

The US dollar was weaker across major peers and is heading into the end of the week on track for its sharpest weekly fall since last summer. By late morning in Asia, the dollar index was lower, reflecting persistent selling pressure amid political uncertainty around Washington’s foreign policy. Against sterling, the dollar slipped earlier in the session, leaving the pound trading up at $1.350, close to recent highs. The euro was steady at $1.175, while moves in the Australian and New Zealand dollars were modest.

In commodities, spot gold extended its rally early this morning, reaching a fresh record at $4,967 per ounce before easing slightly to trade just below that level. Silver also pushed higher to a new all-time high of $99.34 per ounce, while platinum climbed to $2,684 per ounce, supported by continued demand for precious metals as investors reassessed exposure to US assets. Palladium edged lower during the same session.

Oil prices rebounded on Friday morning after losses the previous day. Brent crude rose to $64.35 a barrel, while US crude traded up at $59.65, after comments from President Donald Trump about increased US naval presence near Iran revived concerns about supply risks. Prices had fallen on Thursday following a pullback in geopolitical rhetoric, while US inventory data released overnight showed a larger-than-expected rise in crude stockpiles, tempering gains.