Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility 
Gold and Silver Prices Rebound After Volatile Week Triggered by Fed Nomination 
South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks 
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals 
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record 
Trump’s Inflation Claims Clash With Voters’ Cost-of-Living Reality 
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns 
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 
Global Markets Slide as AI, Crypto, and Precious Metals Face Heightened Volatility 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
Trump Lifts 25% Tariff on Indian Goods in Strategic U.S.–India Trade and Energy Deal 
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 
India–U.S. Interim Trade Pact Cuts Auto Tariffs but Leaves Tesla Out 
Trump Endorses Japan’s Sanae Takaichi Ahead of Crucial Election Amid Market and China Tensions 
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 
Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off 
The U.S. dollar slumped to an eight-week low against the yen and hovered near a one-month low versus the British pound as trade war fears eased. Investors are reassessing the Federal Reserve’s rate outlook while the Bank of Japan signals further rate hikes.
By 0140 GMT, the dollar dropped 0.5% to 151.81 yen, extending Wednesday’s 1.1% decline. The yen strengthened following strong wage data and BOJ board member Naoki Tamura’s remarks that rates must rise to at least 1% by late 2025. Markets now expect a quarter-point BOJ hike by September with a 94.8% probability.
Sterling held firm at $1.2509, after touching $1.2550, its highest since January 7, despite a widely anticipated Bank of England rate cut. Market-implied odds for an immediate BoE rate reduction stand at 92%.
The euro remained steady at $1.0401, after a modest 0.2% gain on Wednesday. The dollar index stood at 107.57, near its overnight low of 107.29, after retreating from a three-week peak of 109.88 earlier in the week. U.S. trade tensions eased after last-minute tariff reprieves for Mexico and Canada, although Washington imposed 10% tariffs on China.
The offshore yuan edged up to 7.2775 per dollar, while the Canadian dollar steadied at C$1.4321, near its highest level since December 17. The Mexican peso held firm at 20.5789 per dollar.
Market focus now shifts to Friday’s U.S. payroll report. Traders have priced in a full quarter-point Fed cut by July and 46.3 basis points of easing by December, according to LSEG data. However, diminishing trade-related inflation risks could allow the Fed more policy flexibility.
