South Korea Exports Hit Record High as Global Trade Momentum Builds 
Wall Street Ends Mixed as Tech and Financial Stocks Weigh on Markets Amid Thin Holiday Trading 
Singapore GDP Growth Surges in 2025 but Outlook Remains Cautious Amid Global Trade Risks 
South Korea Factory Activity Returns to Growth in December on Export Rebound 
U.S. Dollar Steadies Ahead of Fed Minutes as Markets Eye Policy Divisions 
China Manufacturing PMI Rebounds in December, Offering Boost to Economic Growth Outlook 
Federal Reserve Begins Treasury Bill Purchases to Stabilize Reserves and Money Markets 
Asian Currencies Trade Flat as Dollar Weakens in Thin New Year Trading 
Trump Delays Tariff Increases on Furniture and Cabinets for One More Year 
U.S. Stock Futures Slip as Year-End Trading Turns Cautious 
South Korea Inflation Rises to 2.3% in December, Matching Market Expectations 
U.S. Stock Index Futures Steady as Markets Await Fed Policy Clues in Holiday-Thinned Trade 
Asia Manufacturing PMI Rebounds as Exports and Tech Demand Drive Growth into 2026 
South Korea Factory Output Misses Forecasts in November Amid Ongoing Economic Uncertainty 
Asian Markets End Year on AI Optimism as Precious Metals and Currencies Shine 
South Korean Won Slides Despite Government Efforts to Stabilize Currency Markets 
Most Asian currencies edged lower on Wednesday as the U.S. dollar rebounded from a near four-year low, with global markets focused on the Federal Reserve’s highly anticipated interest rate decision. Despite the mild pullback, regional currencies were still on track for solid weekly gains after the dollar weakened sharply in recent sessions.
The U.S. dollar index rose nearly 0.4% during Asian trading, while dollar index futures eased slightly. The greenback had touched its weakest level since February 2022 a day earlier, pressured by uncertainty surrounding the U.S. economic outlook and President Donald Trump’s policy stance. Dollar selling intensified after Trump downplayed concerns about the currency’s recent weakness, adding to market volatility.
Attention has now shifted to the conclusion of the Fed’s policy meeting, where interest rates are widely expected to remain unchanged at 3.75%. Investors are closely watching comments from Fed Chair Jerome Powell for clues on future rate cuts, especially amid growing political pressure from the White House to loosen monetary policy. Trump also stated he was close to nominating a replacement for Powell, claiming rates would fall sharply under new Fed leadership.
Among Asian currencies, the Japanese yen has been one of the strongest performers this week. Although USD/JPY rose 0.3% on Wednesday, the yen remains supported by speculation of possible currency market intervention by Japanese authorities. Warnings from Prime Minister Sanae Takaichi about excessive volatility have fueled expectations of coordinated intervention by Japan and the U.S.
The Australian dollar eased 0.3% from a near three-year high after hotter-than-expected December inflation data. The strong consumer price index has boosted bets that the Reserve Bank of Australia will deliver a 25-basis-point rate hike at its upcoming meeting, according to major analysts.
The Chinese yuan stood out as an outperformer, with USD/CNY falling to a 31-month low amid sustained policy support from Beijing. Meanwhile, the Singapore dollar, Taiwan dollar, and Indian rupee weakened slightly, with the rupee remaining near record lows due to economic uncertainty and trade concerns.
Overall, Asian currency markets remain highly sensitive to Fed signals, dollar movements, and regional central bank policies, keeping volatility elevated in the near term.
