Ukrainian strikes on Russian energy facilities added to inflation concerns, with higher oil prices threatening European growth. The currency later recovered some ground but remained vulnerable to further geopolitical tensions.

Gold rose above $4,170 after Fed Chair Kevin Warsh offered no clear signal of an October rate hike. Markets now see an 84% chance of unchanged rates at the October 27-28 meeting. Meanwhile, the yen held near 158 as BOJ Governor Ueda suggested Japan's underlying inflation was approaching its 2% target.

Brent held near $108 despite a modest pullback, supported by rising tensions around Yemen and the Strait of Hormuz.

Check out today's market updates!