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Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
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U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
Asia’s IPO Market Set for Strong Growth as China and India Drive Investor Diversification 
Dollar Holds Steady as Markets Shift Focus to 2026 Rate Cut Expectations 
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 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
Asian currencies advanced on Tuesday after U.S. President Donald Trump announced that Israel and Iran had agreed to a ceasefire, easing geopolitical tensions. However, market sentiment remained cautious as traders awaited formal confirmation from both countries. Just before the ceasefire deadline, Iran launched a missile strike on Israel, raising doubts about the truce’s durability.
The improved risk appetite supported regional currencies. The Australian dollar (AUD/USD) rose 0.5%, often seen as a key barometer of Asia-Pacific risk sentiment. The Japanese yen (USD/JPY) gained 0.5%, recovering from prior losses, while the Chinese yuan (USD/CNY) edged slightly lower. The South Korean won (USD/KRW) declined 0.3%, and the Singapore dollar (USD/SGD) dipped 0.2%. The Indian rupee (USD/INR) remained flat.
Traders also focused on potential Federal Reserve rate cuts. Growing expectations of a rate reduction by July weakened the U.S. dollar. The dollar index and its futures both fell 0.3% during Asian trading, reversing much of last week’s gains. CME FedWatch Tool data showed the probability of a July rate cut climbed to over 20%, up from 15% last week.
The shift comes ahead of Federal Reserve Chair Jerome Powell’s congressional testimony. While Powell previously downplayed the likelihood of imminent rate cuts, sticky inflation and easing global tensions are influencing market expectations.
Investors are now awaiting official confirmation of the ceasefire from Tehran and Jerusalem. Recent U.S. strikes on Iran’s nuclear facilities have kept tensions high, but Trump’s statement suggests a possible de-escalation if both sides honor the agreement for 24 hours.
With geopolitical risks easing and rate cut hopes rising, Asian currencies are gaining traction while the dollar loses its safe-haven appeal.
