Oil Prices Slip as U.S.–Iran Talks Ease Supply Disruption Fears 
Gold and Silver Prices Slide as Dollar Strength and Easing Tensions Weigh on Metals 
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off 
Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady 
Australia’s December Trade Surplus Expands but Falls Short of Expectations 
South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks 
U.S. Stock Futures Edge Higher as Tech Rout Deepens on AI Concerns and Earnings 
Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility 
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 
Asian Markets Slip as AI Spending Fears Shake Tech, Wall Street Futures Rebound 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns 
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices 
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off 
Thailand Inflation Remains Negative for 10th Straight Month in January 
Asian Currencies Steady Amid Market Fluctuations
Most Asian currencies steadied on Thursday, following recent declines, as the Japanese yen lingered near three-month lows. The U.S. dollar remains supported by expectations of a slower pace of interest rate cuts, reflecting ongoing market uncertainty.
Increased risk aversion impacted regional currencies, with traders cautious ahead of a tight U.S. presidential race and rising tensions in the Middle East. The dollar and gold benefited from this risk aversion, while the yen struggled to attract safe-haven demand amid doubts about the Bank of Japan's (BOJ) capacity to raise interest rates further.
Japanese Yen Stabilizes with Intervention Concerns
The Japanese yen's USDJPY pair saw slight declines on Thursday after reaching a near three-month high in the previous session. Support for the yen emerged as Japanese officials warned against “one-sided” moves in the currency market, heightening fears of potential intervention. However, weak purchasing managers index (PMI) data indicated a contraction in business activity for October, keeping the yen fragile.
Anticipation of general elections in Japan this Sunday raises further doubts about future BOJ rate hikes. The ruling Liberal Democratic Party may need to form a coalition to maintain power, complicating the BOJ's monetary policy decisions.
Dollar Remains Strong Amid Rising Yields
The dollar index slightly dipped but remained close to three-month highs, bolstered by rising Treasury yields. Market expectations suggest the Federal Reserve may only cut rates by 25 basis points in November, supported by signs of resilience in the U.S. economy.
As broader Asian currencies made modest gains, the Australian dollar (AUDUSD) rose by 0.2%, while the South Korean won (USDKRW) remained stable after disappointing GDP data. The Chinese yuan (USDCNY) declined by 0.2%, while the Singapore dollar (USDSGD) and Indian rupee (USDINR) experienced slight drops.
