Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record 
Trump Lifts 25% Tariff on Indian Goods in Strategic U.S.–India Trade and Energy Deal 
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns 
Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility 
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices 
U.S. Stock Futures Edge Higher as Tech Rout Deepens on AI Concerns and Earnings 
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure 
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 
Gold and Silver Prices Slide as Dollar Strength and Easing Tensions Weigh on Metals 
Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady 
Australia’s December Trade Surplus Expands but Falls Short of Expectations 
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 
The Japanese yen regained some strength on Monday after suffering a sharp decline late last week, as investors reassessed the outlook for interest rate hikes in Japan and the likelihood of government intervention during thin end-of-year trading. Currency markets remained cautious, with traders closely watching signals from the Bank of Japan (BOJ) and global geopolitical developments.
According to a summary of opinions released after the BOJ’s December policy meeting, policymakers debated the need to continue raising interest rates. The central bank recently lifted its policy rate to 0.75%, the highest level in 30 years, up from 0.5%. Despite the increase, many board members noted that Japan’s interest rates remain deeply negative in inflation-adjusted terms, suggesting further tightening could be necessary. Expectations around future BOJ rate hikes have become a key driver for the yen’s performance.
Japan’s Finance Minister Satsuki Katayama reiterated last week that authorities have the freedom to respond to excessive currency moves, reinforcing the possibility of yen intervention. These warnings have helped limit aggressive dollar-yen positions, although broader pessimism toward the yen persists. Market participants are increasingly expressing bearish views through cross-currency trades, particularly against higher-yielding currencies such as the Australian dollar. Analysts note that the yen’s traditional role as a safe-haven currency is being questioned amid shifting global monetary dynamics.
The yen strengthened about 0.3% to around 156 per dollar after falling roughly 0.5% on Friday. The U.S. dollar index edged lower, while the euro gained modestly, supported by optimism after U.S. President Donald Trump signaled progress toward a potential peace agreement between Russia and Ukraine following talks with Ukrainian President Volodymyr Zelenskiy.
Attention now turns to the release of minutes from the U.S. Federal Reserve’s December meeting, which could provide further insight into the future path of U.S. interest rates. Elsewhere, the Australian and New Zealand dollars were largely unchanged. In the cryptocurrency market, bitcoin and ether posted moderate gains, reflecting a cautiously positive risk sentiment.
