Why Trump’s new pick for Fed chair hit gold and silver markets – for good reasons 
South Korea Factory Activity Hits 18-Month High as Export Demand Surges 
Wall Street Slides as Warsh Fed Nomination, Hot Inflation, and Precious Metals Rout Shake Markets 
EU Recovery Fund Faces Bottlenecks Despite Driving Digital and Green Projects 
India Budget 2025 Highlights Manufacturing Push but Falls Short of Market Expectations 
U.S. Eases Venezuela Oil Sanctions to Boost American Investment After Maduro Ouster 
BOJ Policymakers Warn Weak Yen Could Fuel Inflation Risks and Delay Rate Action 
China Manufacturing PMI Slips Into Contraction in January as Weak Demand Pressures Economy 
Asian Currencies Hold Firm as Dollar Rebounds on Fed Chair Nomination Hopes 
Gold Prices Stabilize in Asian Trade After Sharp Weekly Losses Amid Fed Uncertainty 
Oil Prices Slide Nearly 3% as U.S.-Iran Talks Ease Geopolitical Tensions 
Philippines Manufacturing PMI Hits Nine-Month High Despite Weak Confidence Outlook 
Asian Markets Slide as Silver Volatility, Earnings Season, and Central Bank Meetings Rattle Investors 
Japan Election Poll Signals Landslide Win for Sanae Takaichi, Raising Fiscal Policy Concerns 
U.S. Government Faces Brief Shutdown as Congress Delays Funding Deal 
Most Asian currencies traded in narrow ranges on Thursday as investors assessed mixed signals from the U.S. Federal Reserve and awaited key developments from a meeting between U.S. President Donald Trump and Chinese President Xi Jinping in South Korea. The dollar retreated slightly in Asian trade after rallying overnight, with traders booking profits following the Fed’s rate cut and cautious tone on future policy moves.
The Federal Reserve reduced interest rates by 25 basis points as expected but downplayed the likelihood of another cut in December. The move fueled uncertainty over the U.S. economic outlook, particularly amid the prolonged government shutdown. The dollar index slipped 0.2% after a strong overnight performance, while Asian currencies largely held firm.
The Chinese yuan strengthened, with the USDCNY pair edging to 7.0973—its strongest since November 2024—after a firm midpoint fix by the People’s Bank of China. Optimism surrounding the Trump-Xi meeting also supported the yuan, as both leaders signaled progress on resolving trade tensions. Discussions are expected to cover rare earth exports, U.S. semiconductor restrictions, and broader trade cooperation.
Meanwhile, the Japanese yen weakened slightly, with the USD/JPY pair down 0.3%. Investors turned cautious ahead of the Bank of Japan’s policy announcement, where rates are expected to remain unchanged. Speculation of continued loose fiscal policy under Prime Minister Sanae Takaichi added pressure to the yen.
Across the region, the Singapore dollar slipped 0.1%, while the Taiwan dollar rose 0.1%. The South Korean won gained 0.4% after Washington and Seoul finalized a new trade agreement. The Australian dollar advanced 0.3% following stronger-than-expected inflation data that curbed expectations of further rate cuts by the Reserve Bank. The Indian rupee remained near record lows, trading above 88 per dollar.
