A surprise improvement in manufacturing activity supported the move, while attention turned to Friday’s employment report, which faces potential delays due to a partial government shutdown. 

The dollar index hovered around 97.5, extending its recent recovery as stronger domestic momentum and shifting policy expectations supported the currency. Developments on the trade front also shaped price action, with a fresh U.S.-India agreement adding support. 

Asian equities rebounded strongly after recent losses, with the MSCI Asia Pacific Index rising 2.2%, led by a sharp recovery in South Korean technology shares. Precious metals also stabilized, with gold and silver regaining ground following recent volatility.

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