The US dollar climbed to its highest level against the euro since March, driven by a sudden shift in market sentiment toward a more restrictive Federal Reserve policy path.
The greenback also gained significant ground against other major currencies, including the Polish zloty, as investors adjusted their positioning for a higher-for-longer interest rate environment.
This repricing of Fed expectations rippled across asset classes.
US Treasury yields climbed on Wednesday, reflecting the market's pivot toward tighter monetary policy.
The stronger dollar and rising yields created headwinds for non-yielding assets, with gold retreating as the opportunity cost of holding the metal increased.
Energy markets also faced pressure.