Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns 
Russian Stocks End Mixed as MOEX Index Closes Flat Amid Commodity Strength 
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices 
South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks 
Singapore Budget 2026 Set for Fiscal Prudence as Growth Remains Resilient 
Australia’s December Trade Surplus Expands but Falls Short of Expectations 
Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off 
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
Gold and Silver Prices Rebound After Volatile Week Triggered by Fed Nomination 
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off 
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility 
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 
The U.S. dollar weakened on Thursday after the Federal Reserve struck a less-hawkish tone than investors anticipated, prompting traders to increase bets on further rate cuts in 2025. While the Fed lowered interest rates by 25 basis points as expected, Chair Jerome Powell’s comments during the post-meeting press conference signaled a more dovish outlook, surprising market participants who were positioned for a firmer stance on inflation.
Analysts noted a clear shift in tone compared to the Fed’s October meeting. Nick Rees, head of macro research at Monex Europe, said the commentary leaned “dovish,” encouraging investors to short the dollar. As selling pressure increased, the euro climbed above the key $1.17 threshold, touching $1.1705—its strongest level in nearly two months. Sterling also gained, reaching $1.3391, and the Japanese yen strengthened 0.25% to 155.64 per dollar, recovering slightly from recent weakness driven by wide interest-rate differentials.
The dollar index fell to 98.543, its lowest since late October, reflecting broad softness across currency markets. Tony Sycamore of IG said traders had expected the Fed to repeat the hawkish tone from October but instead received signals that support risk-asset rallies into year-end.
Market sentiment now leans toward two additional rate cuts next year, exceeding the Fed’s own projection of just one. The central bank also announced it will begin purchasing short-dated Treasury bills starting December 12, with an initial round of roughly $40 billion aimed at supporting market liquidity. The move boosted bond markets, pushing the two-year Treasury yield down to 3.5340% and the 10-year yield to 4.1332%.
Analysts at Societe Generale said the earlier-than-expected T-bill purchases helped spark a rally led by short-term Treasuries. In commodity-linked currencies, the Australian dollar eased to $0.66665, while the New Zealand dollar slipped to $0.5812 after recent highs.
This shift in Fed policy expectations continues to shape global currency flows and investor positioning as markets look ahead to 2025.
