Japan Inflation Holds Firm in November as BOJ Nears Key Rate Hike Decision 
Dollar Holds Firm Ahead of Global Central Bank Decisions as Yen, Sterling and Euro React 
Silver Prices Hit Record High as Safe-Haven Demand Surges Amid U.S. Economic Uncertainty 
Oil Prices Rebound as Trump Orders Blockade of Sanctioned Venezuelan Tankers 
New Zealand Business Confidence Hits 30-Year High as Economic Outlook Improves 
Trump Orders Blockade of Sanctioned Oil Tankers, Raising Venezuela Tensions and Oil Prices 
Asian Currencies Slip as Dollar Strengthens; Indian Rupee Rebounds on Intervention Hopes 
Asian Currencies Trade Sideways as Dollar Weakens Ahead of Key U.S. Data 
Oil Prices Climb on Venezuela Blockade, Russia Sanctions Fears, and Supply Risks 
Austan Goolsbee Signals Potential for More Fed Rate Cuts as Inflation Shows Improvement 
Asian Markets Rebound as Tech Rally Lifts Wall Street, Investors Brace for BOJ Rate Hike 
Canada Signals Delay in US Tariff Deal as Talks Shift to USMCA Review 
Bank of Korea Downplays Liquidity’s Role in Weak Won and Housing Price Surge 
Asian Fund Managers Turn More Optimistic on Growth but Curb Equity Return Expectations: BofA Survey 
Japan Exports to U.S. Rebound in November as Tariff Impact Eases, Boosting BOJ Rate Hike Expectations 
Australian Consumer Sentiment Slumps in Early December as Inflation Fears Resurface 
U.S. Stock Futures Slip After CPI-Fueled Rally as Markets Weigh Economic Uncertainty 
The Japanese yen hovered near multi-month lows on Friday as global currency markets waited for the Bank of Japan’s interest rate decision and guidance on future monetary tightening. The dollar traded around 155.6 yen in early Asian hours, not far from the yen’s 10-month low near 158 reached in November. Investor sentiment toward the yen remains fragile amid concerns over Japan’s fiscal health and the perception that policymakers have been slow to raise interest rates.
Market participants are almost fully pricing in a 25 basis point hike by the Bank of Japan, which would lift the short-term policy rate to 0.75%. Expectations were reinforced by comments earlier this month from Governor Kazuo Ueda. However, traders are focused less on the rate hike itself and more on Ueda’s tone and outlook during his press conference, as this will shape expectations for further tightening into next year. According to Reuters sources, the BOJ is unlikely to release updated estimates of its neutral rate, instead relying on verbal guidance to communicate its policy path.
Strategists note that while a rate hike is overdue based on economic fundamentals, it may not be enough to trigger a sustained yen rally. If policymakers signal that the next move is still far off, the currency could remain under pressure. A surprise decision to hold rates steady could spark sharp volatility in USD/JPY and potentially force authorities to consider direct market intervention.
In broader foreign exchange markets, the euro edged slightly lower after the European Central Bank left interest rates unchanged at 2%. ECB President Christine Lagarde avoided offering forward guidance and emphasized flexibility, pushing back against more hawkish expectations. The euro traded near $1.17, while analysts said the ECB’s balanced tone reduced confidence that the next policy move would be a rate hike.
The U.S. dollar briefly weakened overnight following an unexpected drop in U.S. inflation, though doubts over data reliability during the government shutdown limited the move. Sterling was volatile after the Bank of England cut rates to 3.75% as expected, while the Norwegian krone strengthened modestly after its central bank signaled no urgency to ease policy. Elsewhere, the Chinese yuan remained firm, the South Korean won stayed under pressure, and bitcoin traded steadily below $90,000.
