Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility 
Australia’s December Trade Surplus Expands but Falls Short of Expectations 
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility 
Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady 
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
Gold and Silver Prices Rebound After Volatile Week Triggered by Fed Nomination 
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices 
U.S. Stock Futures Edge Higher as Tech Rout Deepens on AI Concerns and Earnings 
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off 
Asian Markets Slip as AI Spending Fears Shake Tech, Wall Street Futures Rebound 
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 
Oil Prices Slip as U.S.–Iran Talks Ease Supply Disruption Fears 
Trump Lifts 25% Tariff on Indian Goods in Strategic U.S.–India Trade and Energy Deal 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
Asian currencies saw modest gains on Tuesday as growing confidence in a potential U.S. Federal Reserve rate cut in December supported regional sentiment. The shift in expectations helped several Asian units recover recent losses, even as the U.S. dollar held firm ahead of a series of key economic reports.
Markets have sharply increased bets that the Fed will lower interest rates at its December 9–10 meeting, with CME FedWatch now pricing in nearly an 80% chance of a 25-basis-point cut—up from just 40% a week earlier. Comments from multiple Fed officials signaling support for easing contributed to this turnaround. According to the Wall Street Journal’s Nick Timiraos, Fed Chair Jerome Powell appears to have enough backing for a December cut, although policymakers remain divided on the outlook for further reductions.
Despite the shift in rate expectations, the dollar index stayed above the 100 level as traders awaited fresh U.S. economic data. Upcoming releases include September’s producer price index and retail sales, followed by the PCE price index—widely regarded as the Fed’s preferred inflation measure. These will form the last major data inputs before the December meeting, especially with officials warning that October’s inflation and labor numbers may not be published due to an extended U.S. government shutdown.
The Chinese yuan strengthened slightly, with USD/CNY slipping 0.1% amid optimism over U.S.-China relations, boosted by news that U.S. President Donald Trump plans to visit Beijing in April. Meanwhile, the Japanese yen remained near 10-month lows above 156 per dollar, hovering close to levels that have triggered government intervention in the past. Tokyo issued repeated warnings about excessive yen weakness, though no direct action has been taken. Analysts note that meaningful yen recovery would require stronger fiscal discipline and continued policy normalization by the Bank of Japan.
Regional currencies traded narrowly, with the Australian dollar dipping 0.1%, the Indian rupee holding above 89 per dollar, and both the South Korean won and Singapore dollar remaining largely unchanged.
