U.S. Dollar Slides Toward Biggest Annual Loss Since 2017 as 2026 Risks Loom 
South Korea Inflation Rises to 2.3% in December, Matching Market Expectations 
South Korea Exports Hit Record High as Global Trade Momentum Builds 
Asia Manufacturing PMI Rebounds as Exports and Tech Demand Drive Growth into 2026 
U.S. Stock Futures Slip as Year-End Trading Turns Cautious 
Asian Stock Markets Start New Year Higher as Tech and AI Shares Drive Gains 
South Korea Factory Output Misses Forecasts in November Amid Ongoing Economic Uncertainty 
Oil Prices Stabilize at Start of 2026 as OPEC+ Policy and Geopolitical Risks Shape Market Outlook 
U.S. Dollar Starts 2026 Weak as Yen, Euro and Sterling Hold Firm Amid Rate Cut Expectations 
Wall Street Ends Mixed as Tech and Financial Stocks Weigh on Markets Amid Thin Holiday Trading 
Oil Prices Slip Slightly as Markets Weigh Geopolitical Risks and Supply Glut Concerns 
South Korea Factory Activity Returns to Growth in December on Export Rebound 
Forex Markets Hold Steady as Traders Await Fed Minutes Amid Thin Year-End Volumes 
South Korean Won Slides Despite Government Efforts to Stabilize Currency Markets 
Singapore GDP Growth Surges in 2025 but Outlook Remains Cautious Amid Global Trade Risks 
Trump Delays Tariff Increases on Furniture and Cabinets for One More Year 
Most Asian currencies traded within a tight range on Tuesday, while the U.S. dollar edged lower as renewed geopolitical concerns dampened investor appetite for American assets. Market sentiment turned cautious after U.S. President Donald Trump reiterated his demands regarding Greenland, including the possibility of tariffs on Europe and even potential military action, which unsettled global markets and pressured the greenback.
A U.S. market holiday on Monday resulted in limited overnight cues, keeping Asian markets subdued and largely risk-averse. Regional currencies showed little reaction to China’s central bank leaving its key loan prime rate unchanged, a move that was widely anticipated by investors. Meanwhile, attention shifted to Japan after Prime Minister Sanae Takaichi announced a snap election scheduled for early February, adding a layer of political uncertainty ahead of a closely watched Bank of Japan meeting later this week.
The Japanese yen remained muted, with the USD/JPY pair slipping slightly but staying near recent highs. While Prime Minister Takaichi’s strong approval ratings suggest continuity in leadership, markets are questioning how much room the government has for additional fiscal stimulus. Concerns over rising Japanese government bond yields weighed on the yen, even as investors debated whether the Bank of Japan will proceed with further interest rate hikes after its last increase in late 2025. Uncertainty around upcoming spring wage negotiations has also made traders cautious.
The U.S. dollar index and futures both declined modestly in Asian trading, reflecting unease over Trump’s Greenland stance ahead of his expected appearance at the World Economic Forum in Davos. Asian currencies largely remained constrained by this risk-off mood. The Chinese yuan held near its strongest levels in over two years, supported by firm midpoint fixings from the People’s Bank of China. The Australian dollar and Taiwan dollar posted modest gains, benefiting from dollar weakness, while the South Korean won, Singapore dollar, and Indian rupee saw slight declines. The Indian rupee, in particular, hovered near the 91-per-dollar level amid growing concerns about India’s economic outlook.
Overall, Asian currency markets remained cautious, balancing regional economic signals against rising global political risks.
