Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
Australia’s Economic Growth Slows in Q3 Despite Strong Investment Activity 
Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
Spain’s Industrial Output Records Steady Growth in October Amid Revised September Figures 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
Asian Markets Stabilize as Wall Street Rebounds and Rate Concerns Ease 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
Most Asian currencies strengthened on Monday, supported by signs of improving Chinese business activity and continued weakness in the U.S. dollar. The dollar slipped further as investors ramped up expectations of a Federal Reserve interest rate cut and remained wary of rising U.S. debt levels.
The dollar index fell 0.2% in Asian trading, hovering near a three-year low. Fed rate cut bets surged, with CME FedWatch showing a 25 basis point cut likely by September. This comes despite May’s inflation uptick and Fed Chair Jerome Powell’s recent dismissal of immediate cuts. However, political pressure from former President Donald Trump—who may announce Powell’s successor early—added uncertainty.
Meanwhile, the Congressional Budget Office projected Trump’s advancing tax and spending bill would add nearly $3.3 trillion to the national debt over the next decade, further weighing on the greenback.
The Chinese yuan saw modest gains, with the USDCNY pair down 0.1%, nearing its strongest level since November. China’s June PMI data showed slightly improved factory and service activity, aided by a recovery in overseas orders following a tariff cut agreement with the U.S. Still, manufacturing contracted for the third month, and domestic demand remained weak, fueling expectations of more economic stimulus from Beijing.
Other Asian currencies followed suit. The South Korean won rose 0.6%, the Indian rupee gained 0.1%, and the Australian dollar firmed slightly despite weaker commodity revenue forecasts. The Japanese yen strengthened, even with underwhelming industrial output figures. The Singapore dollar remained flat.
Markets largely shrugged off renewed U.S.-Canada trade talks, which resumed after Ottawa dropped its digital services tax.
With U.S. debt risks and potential Fed policy shifts looming, investor focus remains on global trade developments and upcoming economic data.
