Bank of Korea Downplays Liquidity’s Role in Weak Won and Housing Price Surge 
BoE Set to Cut Rates as UK Inflation Slows, but Further Easing Likely Limited 
Silver Prices Hit Record High as Safe-Haven Demand Surges Amid U.S. Economic Uncertainty 
Korea Zinc to Build $7.4 Billion Critical Minerals Refinery in Tennessee With U.S. Government Backing 
Trump Orders Blockade of Sanctioned Oil Tankers, Raising Venezuela Tensions and Oil Prices 
RBA Unlikely to Cut Interest Rates in 2026 as Inflation Pressures Persist, Says Westpac 
Asian Stocks Slide as AI Spending Fears and Global Central Bank Decisions Weigh on Markets 
Asian Currencies Trade Sideways as Dollar Weakens Ahead of Key U.S. Data 
Japan PMI Data Signals Manufacturing Stabilization as Services Continue to Drive Growth 
U.S. Dollar Steadies Near October Lows as Rate Cut Expectations Keep Markets on Edge 
Asian Fund Managers Turn More Optimistic on Growth but Curb Equity Return Expectations: BofA Survey 
Gold and Silver Surge as Safe Haven Demand Rises on U.S. Economic Uncertainty 
Dollar Holds Firm Ahead of Global Central Bank Decisions as Yen, Sterling and Euro React 
Chinese Robotaxi Stocks Rally as Tesla Boosts Autonomous Driving Optimism 
Asian Stocks Edge Higher as Tech Recovers, U.S. Economic Uncertainty Caps Gains 
Oil Prices Slip in Asia as 2026 Supply Glut Fears and Russia-Ukraine Talks Weigh on Markets 
Asian Currencies Weaken Amid Dollar Strength
Most Asian currencies experienced a decline on Tuesday as the U.S. dollar held steady at a two-month high. This shift is largely attributed to ongoing speculations that the Federal Reserve will adopt a more cautious approach to interest rate cuts.
Federal Reserve's Influence on the Dollar
Recent comments from Federal Reserve officials have bolstered expectations for a slower pace of rate reductions. With resilience in U.S. inflation and labor market data, traders are now positioning themselves for a smaller 25 basis point cut in November. Fed Governor Christopher Waller emphasized the need for “more caution” in rate adjustments, reinforcing the idea of gradual cuts ahead. As of the latest reports, traders are pricing in an approximately 86% chance of a 25 basis point cut, with a 14% chance that rates will remain unchanged, according to CME FedWatch.
Asian Market Sentiment Deteriorates
The overall sentiment in Asian markets has been negatively affected by tepid reactions to China's recent stimulus measures. The lack of detailed information regarding these fiscal policies has contributed to a weakening of the Chinese yuan, which saw a 0.3% increase against the dollar, reaching near a one-month high.
Currency Performance Overview
Most Asian currencies have struggled recently, with the Japanese yen depreciating slightly against the dollar, hovering near the critical 150-yen mark. The Australian dollar faced marginal losses amid falling commodity prices. Conversely, the South Korean won gained 0.3% following the Bank of Korea's recent interest rate cut. The Singapore dollar showed slight growth, while the Indian rupee remained close to record highs of 84 rupees, despite higher-than-expected inflation data for September.
Conclusion
As the market braces for the Federal Reserve's next moves and evaluates China's economic strategies, the outlook for Asian currencies remains cautious amid persistent dollar strength.
