Austria’s AA Credit Rating Affirmed as Fitch Highlights Stable Outlook 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
Vietnam’s November Trade Sees Monthly Decline but Strong Year-on-Year Growth 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
U.S. Stocks End Week Higher as Markets Anticipate Fed Rate Cut 
Dollar Weakens Ahead of Expected Federal Reserve Rate Cut 
U.S. Defense Bill Sets Record $901 Billion Budget, Includes Ukraine Aid 
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
Asia’s IPO Market Set for Strong Growth as China and India Drive Investor Diversification 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
Trump Meets Mexico and Canada Leaders After 2026 World Cup Draw Amid USMCA Tensions 
Russia Stocks Close Flat as MOEX Hits 1-Month High 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
Asian Currencies Decline as Dollar Strengthens Ahead of Key Data Releases
Asian currencies experienced slight declines on Tuesday as traders adopted a cautious stance, anticipating a series of significant economic reports. A stronger U.S. dollar, boosted by recent gains, pressured regional currencies as concerns over upcoming economic data and political events influenced trading sentiment.
Japanese Yen Stabilizes Amid Political Uncertainty
Following a steep drop to near three-month lows, the Japanese yen managed a modest recovery, gaining 0.2% against the U.S. dollar. This uptick came after Finance Minister Katsunobu Kato emphasized the government’s commitment to monitoring currency market volatility. The yen had fallen sharply post-election, as Japan’s ruling LDP coalition lost its majority, introducing heightened political uncertainty. Analysts expect the Bank of Japan (BOJ) to hold interest rates steady in its Thursday meeting, with policymakers cautious given the political backdrop.
Dollar Maintains Strength Amid Key U.S. Economic Data
The U.S. dollar index remained stable, hovering near recent highs, supported by expectations of a gradual approach to interest rate cuts by the Federal Reserve. Traders await U.S. GDP data on Thursday, followed by the Fed's preferred inflation gauge, the PCE price index, and nonfarm payrolls on Friday. These indicators could provide further insights into the Fed’s monetary strategy.
Regional Currency Movements
Asian currencies generally softened amid dollar strength. The Australian dollar fell 0.2% ahead of its inflation report, while China’s yuan gained 0.2% as markets awaited PMI data to gauge Beijing’s recent stimulus impact. The South Korean won and Singapore dollar also rose modestly, while the Indian rupee held near recent record lows.
