Asian Markets Surge as Japan Election, Fed Rate Cut Bets, and Tech Rally Lift Global Sentiment 
Australian Household Spending Dips in December as RBA Tightens Policy 
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 Africa Eyes ECB Repo Lines as Inflation Eases and Rate Cuts Loom 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility 
Gold and Silver Prices Climb in Asian Trade as Markets Eye Key U.S. Economic Data 
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
UK Starting Salaries See Strongest Growth in 18 Months as Hiring Sentiment Improves 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record 
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility 
Indian Refiners Scale Back Russian Oil Imports as U.S.-India Trade Deal Advances 
Trump Lifts 25% Tariff on Indian Goods in Strategic U.S.–India Trade and Energy Deal 
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 
The U.S. dollar traded steadily on Tuesday as investors awaited the Federal Reserve’s release of its December meeting minutes, which are widely expected to reveal internal divisions over the future path of monetary policy. Currency markets remained calm amid thin holiday liquidity, following a challenging year for the greenback that lifted major rivals such as the euro and the British pound to multi-year highs.
The euro was last seen around $1.1772, putting it on track for an annual gain of nearly 14%, its strongest performance since 2017. Sterling also remained firm near $1.3509, heading for an approximate 8% rise in 2025. These moves reflect sustained pressure on the U.S. dollar, driven by expectations of Federal Reserve rate cuts, narrowing interest rate differentials, and concerns about U.S. fiscal deficits and political uncertainty.
The dollar index, which measures the currency against a basket of major peers, hovered near 98.03, close to a three-month low. It is set to record a yearly decline of about 9.6%, marking its steepest drop in eight years. Market participants are increasingly focused on the Fed’s outlook after the central bank cut rates earlier this month but signaled it may pause further easing in the near term. For next year, policymakers appear split, adding uncertainty to the dollar’s trajectory.
Traders are currently pricing in two additional rate cuts in 2026, suggesting further downside potential for the U.S. currency. Analysts at MUFG forecast the dollar index could fall another 5% next year, emphasizing that U.S. economic performance and monetary policy will remain the key drivers.
In Asia, the Japanese yen traded near 156.07 per dollar, moving away from levels that previously triggered verbal intervention warnings from Japanese officials. Despite two rate hikes by the Bank of Japan this year, the yen has remained broadly flat, reflecting investor frustration with the slow pace of tightening. Elsewhere, the Australian dollar hovered around $0.6693, near a 14-month high, while the New Zealand dollar rose to $0.5806, ending a four-year losing streak.
