Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
UK Starting Salaries See Strongest Growth in 18 Months as Hiring Sentiment Improves 
Australian Household Spending Dips in December as RBA Tightens Policy 
Australian Pension Funds Boost Currency Hedging as Aussie Dollar Strengthens 
ECB’s Cipollone Backs Digital Euro as Europe Pushes for Payment System Independence 
Nikkei 225 Hits Record High Above 56,000 After Japan Election Boosts Market Confidence 
Trump Lifts 25% Tariff on Indian Goods in Strategic U.S.–India Trade and Energy Deal 
Bank of Canada Holds Interest Rate at 2.25% Amid Trade and Global Uncertainty 
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 
Yesterday, a report from Bloomberg that suggested that Chinese government officials, who are reviewing the country’s vast forex reserves of more than $3 trillion have made a comment suggesting that China might reevaluate its reserve strategy and trim the country’s purchase of U.S. Treasuries
. The report sent both dollar and treasuries tumbling as a change of policy in China, which is the largest holder of U.S. Treasuries to the tune of 1.2 trillion could have significant ramifications for the global markets.
However, China’s State Administration of Foreign Exchange (SAFE), which is the country’s foreign exchange regulator countered the claim in the report by calling it false or fake news. "The news could quote the wrong source of information, or maybe fake news," the State Administration of Foreign Exchange (SAFE) said in a statement published on its website.
Both Treasuries and the dollar recovered after the Bloomberg report was countered. The dollar index, which is the value of the dollar against a basket of currencies recovered all the yesterday’s loss and is currently trading at 92.5. The U.S. 10-year yield declined more than 5 basis points and is currently trading at 2.54 percent.
