Volatility in the foreign exchange market surged as investors sought refuge in safe-haven currencies following a global sell-off in stocks. The shift was driven by diminishing expectations of a Federal Reserve rate cut in December, as Fed officials expressed caution due to inflation concerns and labor market stability. This led to a sell-off in US stocks and bonds, affecting Asian and European markets, and boosting demand for the Swiss franc and Japanese yen. The US dollar fell 0.5% against both currencies. Additionally, the British pound faced pressure after reports indicated that the UK's upcoming budget would not include income tax hikes, adding to the complex dynamics influencing the forex market.