Central-bank pause sparks rally; yen jumps, dollar slips

Global markets rallied at month end on April 30 after several major central banks opted not to raise policy rates and used cautious language in public statements. The dollar weakened against a range of currencies as equities and precious metals gained.

Japan’s Ministry of Finance intervened in foreign exchange markets, selling dollars to support the yen. USD/JPY fell about 2.3%, sliding from near 160.70 to below 156.50 in a matter of hours and breaching multiple technical support levels.

U.S. equity benchmarks advanced, with the Dow Jones Industrial Average outpacing other major indexes. Precious metals and industrial metals also rose, with silver posting notable gains during the session.

Energy futures moved unevenly. Brent crude rose to levels not seen since 2022, while West Texas Intermediate neared $120 a barrel before trimming gains later in the trading day. Physical oil markets remained under strain even as futures prices pulled back from intraday highs.

Currency markets reflected several influences beyond central bank communications. A European Central Bank decision that market participants judged to be disappointing coincided with a pullback in oil futures and put downward pressure on the euro and the Canadian dollar.

Reports tied to geopolitical tensions factored into trading. Market commentary referenced disruptions in the Strait of Hormuz and statements attributed to Iranian officials demanding the U.S. lift a blockade before talks proceed, alongside reports of possible targeted U.S. strikes.

Traders and investors cited month-end flows and central bank statements as drivers of rapid repositioning across asset classes. Key economic releases ahead include purchasing managers’ index reports for the U.S. and Canada and Japan’s consumer price index due later in the day.

Market participants are monitoring incoming economic data and geopolitical developments for further direction in currencies, commodities and equity markets.