The US Dollar index soared to its highest level in five months as Middle East tensions lingered in the backdrop.
March's robust retail figures in the US underscored the nation's robust economic expansion, fueling the dollar's surge globally. Expectations of reduced Federal Reserve rate cuts, coupled with mounting pressure on other central banks to initiate easing measures first, propelled the dollar's main index to a five-month peak on Tuesday, marking a 4% increase over six weeks. The euro, China's offshore yuan, and the British pound all weakened against the dollar, hitting their lowest levels since November, while Japan's yen plummeted to a 34-year low.
Gold prices dipped amid elevated US Treasury yields, though persistent safe-haven demand, driven by concerns over escalating geopolitical tensions, kept gold relatively close to its recent record high.

Asia Pacific markets
China's economy exceeded expectations, growing by 5.3% in the first quarter compared to a year ago.

The Japanese yen approached a new low against the US dollar.
The AUD/USD currency pair is poised to test support near the $0.6380 level.

European markets
Data revealed a slight easing of inflationary pressures in Britain's labor market, offering some relief to the Bank of England. However, underlying issues persist, with wage growth remaining high and more individuals exiting the workforce.
The pound briefly weakened against both the US dollar and euro following the data release, leading investors to scale back expectations for BoE rate cuts this year, with the first reduction fully priced in for September.
Meanwhile, the euro remains above the support level near 1.0550 against the US dollar.

American markets
The International Monetary Fund's Spring meeting commenced in Washington, featuring speeches from Fed Chair Jerome Powell, European Central Bank President Christine Lagarde, and Bank of England Governor Andrew Bailey. The IMF is also set to release its updated World Economic Outlook, with market focus on its projections for US growth for this year and the next.

The USD/CAD currency pair reached resistance around the $1.3820 mark, prompting speculation on its subsequent trajectory.