Dollar Holds Steady as Markets Shift Focus to 2026 Rate Cut Expectations 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
Asia’s IPO Market Set for Strong Growth as China and India Drive Investor Diversification 
China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
European Oil & Gas Stocks Face 2026 With Cautious Outlook Amid Valuation Pressure 
Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
Australia’s Economic Growth Slows in Q3 Despite Strong Investment Activity 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
The U.S. dollar held steady on Tuesday but remained close to a three-year low against the euro and a six-month low against the yen as investors navigated ongoing volatility in U.S. trade policy. The greenback was last up 0.27% at 143.53 yen, still near Friday’s low of 142.05. The euro slipped 0.22% to $1.1324 after hitting $1.1474 last week, its highest level in three years.
After a sharp drop last week, the dollar rose 0.3% against the Swiss franc in Asian trading, though it is still down nearly 8% this month—on track for its worst monthly performance since December 2008.
Market sentiment has been shaken by the unpredictable back-and-forth on U.S. tariffs. While the recent exemption of smartphones and electronics from China tariffs briefly eased tensions, President Trump’s mixed signals suggest this relief may be short-lived. The resulting policy confusion has weakened the dollar’s traditional safe-haven appeal.
According to Kieran Williams of InTouch Capital Markets, uncertainty is driving a slow rotation away from dollar-denominated assets. Prashant Newnaha of TD Securities noted last week’s turbulence was marked by liquidation and asset reallocation, though this week has been calmer.
The U.S. 10-year Treasury yield held at 4.354%, following its steepest weekly climb in two decades. Fed officials’ recent dovish comments have added to speculation of interest rate cuts. Fed Governor Christopher Waller flagged Trump’s tariff stance as a potential recession trigger, even amid persistent inflation.
Traders now expect around 86 basis points of Fed rate cuts by year-end. The dollar index hovered at 99.864, nearing its lowest since 2022. Meanwhile, sterling stayed firm at $1.31825, the Aussie edged up to $0.63415, and the Kiwi gained 0.41% to $0.58985.
