Asian Currencies Stabilize as Dollar Holds Near Two-Month High After Fed Hawkish Signal 
Dollar Surges After Fed Holds Rates Steady, Signals Potential Tightening Ahead 
Japan Inflation Stays Below BOJ Target Despite Rate Hike and Rising Energy Cost Risks 
Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 
Australia Eases Capital Gains Tax Reforms to Support Small Businesses and Startups 
US Stock Futures Jump on Reports of Preliminary US-Iran Peace Deal Despite Fed’s Hawkish Outlook 
BOJ Signals More Rate Hikes as Inflation Risks Rise Amid Energy Price Pressures 
German Auto Suppliers Turn Bearish as Investment and Jobs Shift Overseas 
Canada Imposes 10% Tariff on Canned Vegetable Imports to Protect Domestic Industry 
Oil Prices Drop as U.S.-Iran Peace Deal Eases Supply Concerns 
Oil Prices Steady as U.S.-Iran Truce Uncertainty and Middle East Tensions Keep Markets on Edge 
Gold Prices Slide as Hawkish Fed and Strong Dollar Weigh on Bullion 
Trump Questions USMCA Renewal as Trade Talks Continue 
US Stock Futures Slip After Wall Street Rally Fueled by US-Iran Deal and Chipmaker Surge 
Trump and Iran Sign Framework Peace Deal in France Amid Ongoing Middle East Tensions 
Dollar Hits One-Month High as Hawkish Fed Outlook Boosts Greenback 
Asian Stocks Rally as Japan and South Korea Reach Record Highs on US-Iran Peace Deal 
Most Asian currencies edged higher on Tuesday, buoyed by optimism surrounding improving U.S.-China trade relations and expectations of a Federal Reserve rate cut later this week. The U.S. dollar weakened slightly as traders awaited the Fed’s two-day meeting, where policymakers are widely expected to reduce interest rates by at least 25 basis points amid signs of cooling inflation and a softer labor market.
The Japanese yen led regional gains, recovering from recent losses as investors focused on a meeting between Japanese Prime Minister Sanae Takaichi and U.S. President Donald Trump, as well as the Bank of Japan’s upcoming policy announcement. The yen’s USD/JPY pair slipped 0.3%, reflecting renewed demand for the safe-haven currency.
In South Korea, the won lagged behind its peers even as third-quarter GDP exceeded expectations, supported by stronger exports following an earlier trade deal with Washington. The USD/KRW pair rose 0.4%. Across the region, currencies traded within a narrow range, maintaining momentum from Monday’s gains after positive signals in U.S.-China trade negotiations lifted market sentiment.
The Chinese yuan also firmed, with the USD/CNY pair easing 0.1%—hovering near its strongest level since November 2024. The yuan’s resilience has been underpinned by firm midpoint fixes from the People’s Bank of China, as Beijing aims to enhance the competitiveness of its exports. Traders remained focused on the anticipated meeting between Trump and Chinese President Xi Jinping in South Korea, expected to build on the recently agreed trade framework.
Elsewhere, the Australian dollar rose 0.1%, while the Singapore and Taiwan dollars edged slightly lower. The Indian rupee weakened modestly after crossing the 88-per-dollar mark, with markets monitoring trade discussions between Washington and New Delhi amid ongoing tariff pressures.
Overall, sentiment remained cautious but optimistic as investors awaited both the Trump-Xi summit and the Fed’s policy direction.
