As expected, the Federal Reserve held steady, leading to wide fluctuations in the U.S. dollar during the session

With the Yellow prices surging and then falling back again

On Wednesday, following the release of the ADP non-farm employment report, which came in below expectations, the U.S. Dollar Index briefly fell below the 103 mark. However, it reversed its intraday decline after Federal Reserve Chairman Jerome Powell firmly addressed and dismissed expectations of a rate cut in March. It ultimately closed up 0.121% at 103.52. The U.S. Treasury Department's implication that it will not further increase the size of quarterly bond auctions before next year boosted the demand for U.S. Treasuries. The yield on the 10-year U.S. Treasury note fell, breaking below the 4% mark during the session for the first time in two weeks, and finally closed at 3.918%. The yield on the 2-year U.S. Treasury note, more sensitive to Federal Reserve policy rates, closed at 4.209%.

International crude oil prices resumed their decline as cold weather prompted U.S. producers to increase output, leading to an unexpected rise in crude oil inventories. However, amid escalating tensions in the Middle East, both benchmarks achieved their first monthly gain since September of last year. WTI crude closed down 2.48% at $75.75 per barrel, and Brent crude closed down 2.35% at $80.91 per barrel.