Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady 
Singapore Budget 2026 Set for Fiscal Prudence as Growth Remains Resilient 
Thailand Inflation Remains Negative for 10th Straight Month in January 
Global Markets Slide as AI, Crypto, and Precious Metals Face Heightened Volatility 
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 
Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks 
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off 
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns 
Trump Endorses Japan’s Sanae Takaichi Ahead of Crucial Election Amid Market and China Tensions 
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals 
Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure 
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
The U.S. dollar remained steady on Tuesday, hovering close to a three-month high, as mixed signals from the Federal Reserve prompted traders to scale back expectations for further interest rate cuts. Investors are also closely watching the Reserve Bank of Australia (RBA) meeting, where policymakers are expected to keep rates unchanged.
The yen weakened to 154.38 per dollar, near its lowest level in over eight months, triggering concerns of possible intervention from Japanese authorities. Meanwhile, differing opinions among Fed officials and a lack of official economic data due to the U.S. government shutdown have fueled uncertainty about the central bank’s policy direction.
After last week’s rate cut, Fed Chair Jerome Powell signaled that it could be the final reduction for the year. Market pricing now shows a 65% probability of another cut in December, down from 94% a week ago, according to CME’s FedWatch Tool. This recalibration in expectations has supported the dollar, with the euro slipping 0.11% to $1.1506 and the British pound easing to $1.312. The dollar index rose 0.1% to 99.99, marking a three-month high.
The shutdown has limited access to key economic data, leaving investors reliant on private reports such as ADP’s employment data. A recent ISM survey revealed that U.S. manufacturing contracted for the eighth consecutive month in October, underscoring economic weakness. Analysts at MUFG warned that prolonged shutdown risks could further dampen growth.
In Asia, the yen’s continued weakness contrasts with the Bank of Japan’s cautious stance, even as Governor Kazuo Ueda hinted at possible tightening later this year. Analysts expect further yen depreciation unless the BOJ acts soon.
The Australian dollar traded around $0.6535 ahead of the RBA meeting. Stronger-than-expected inflation data has reduced expectations for near-term rate cuts, with markets now anticipating only one cut by mid-2026. Economists predict the RBA could strike a more hawkish tone, potentially bolstering the Australian dollar in the coming sessions.
