Gold Prices Rebound on U.S.-Iran Peace Deal Optimism Despite Fed Rate Hike Signals 
Asian Currencies Stabilize as Dollar Holds Near Two-Month High After Fed Hawkish Signal 
Trump and Iran Sign Framework Peace Deal in France Amid Ongoing Middle East Tensions 
China’s AI Manufacturing Boom Masks Weak Consumer Economy, Citi Says 
Canada Imposes 10% Tariff on Canned Vegetable Imports to Protect Domestic Industry 
Japan Inflation Stays Below BOJ Target Despite Rate Hike and Rising Energy Cost Risks 
Dollar Surges After Fed Holds Rates Steady, Signals Potential Tightening Ahead 
BOJ Signals More Rate Hikes as Inflation Risks Rise Amid Energy Price Pressures 
Russia Stocks End Flat as MOEX Index Hits New 52-Week Low; Gold Falls and Oil Mixed 
Italy’s Economy Outpaces Eurozone Peers as Investment Spending Fuels Growth 
Canada, British Columbia Launch $5 Billion Infrastructure Partnership to Boost Housing, Transit, and Healthcare 
Oil Prices Drop as U.S.-Iran Peace Deal Eases Supply Concerns 
Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 
Asian Stocks Rally as Japan and South Korea Reach Record Highs on US-Iran Peace Deal 
Japan Signals Readiness to Intervene as USD/JPY Nears 161 Amid Yen Weakness 
German Industry Employment Falls to Lowest Level in a Decade 
Oil Prices Steady as U.S.-Iran Truce Uncertainty and Middle East Tensions Keep Markets on Edge 
Most Asian currencies traded near flatline levels on Friday as the U.S. dollar edged lower in thin holiday trading at the start of the new year. Reduced market participation across the region kept trading volumes subdued, limiting price movements and leaving currency markets largely directionless.
Several major Asian markets, including Japan and mainland China, were closed on Friday for New Year holidays, while others had already shut a day earlier. These widespread market closures significantly reduced liquidity, prompting investors to stay on the sidelines while waiting for normal trading conditions to resume. As a result, Asian foreign exchange markets showed minimal volatility despite broader shifts in global currency sentiment.
The U.S. Dollar Index slipped around 0.2%, extending weakness seen toward the end of 2025. The greenback had finished last year with sharp losses, pressured by expectations of Federal Reserve interest rate cuts and easing U.S. inflation. Moving into early 2026, the dollar struggled to regain momentum as investors continued to price in slower economic growth and further declines in U.S. interest rates, factors that typically weigh on the currency.
Despite the softer dollar, Asian currencies showed little reaction due to the lack of strong regional catalysts. The Japanese yen saw the USD/JPY pair tick up about 0.1%, while the Singapore dollar’s USD/SGD pair traded largely flat. Similarly, the South Korean won’s USD/KRW pair remained unchanged during the session.
In South Asia, the Indian rupee showed marginal strength, with the USD/INR pair edging down roughly 0.1%. In China, the yuan was also stable, as the onshore USD/CNY pair was little changed and the offshore USD/CNH pair dipped around 0.1%.
The Australian dollar stood out from the broader regional trend, with the AUD/USD pair rising approximately 0.4%. The move suggested mild optimism toward risk-sensitive currencies, even as overall market activity remained muted.
With holiday-related closures still impacting liquidity, analysts expect Asian currency markets to remain range-bound in the near term, awaiting clearer signals from global economic data and central bank policy once full trading resumes.
