U.S. Dollar Slides for Third Straight Week as Rate Cut Expectations Boost Euro and Pound 
Gold Prices Hold Firm as Markets Await Fed Rate Cut; Silver Surges to Record High 
Oil Prices Rebound in Asia as Venezuela Sanctions Risks Offset Ukraine Peace Hopes 
Wall Street Futures Slip as Oracle Earnings Miss Reignites AI Spending Concerns 
Asian Stocks Slip Ahead of Fed Decision as China Deflation Concerns Deepen 
Asian Stocks Rally as Tech Rebounds, China Lags on Nvidia Competition Concerns 
Indonesia–U.S. Tariff Talks Near Completion as Both Sides Push for Year-End Deal 
Asian Stocks Slip as Oracle Earnings Miss Sparks AI Profitability Concerns 
Gold Prices Slip Slightly in Asia as Silver Nears Record Highs on Dovish Fed Outlook 
Ireland Limits Planned Trade Ban on Israeli Settlements to Goods Only 
Hong Kong Cuts Base Rate as HKMA Follows U.S. Federal Reserve Move 
Oil Prices Edge Higher as U.S. Seizes Sanctioned Venezuelan Tanker 
Gold Prices Dip as Markets Absorb Dovish Fed Outlook; Silver Eases After Record High 
Japan Weighs New Tax Breaks to Boost Corporate Investment Amid Spending Debate 
Fed’s Dovish Tone Sends Dollar Lower as Markets Price In More Rate Cuts 
Brazil Holds Selic Rate at 15% as Inflation Expectations Stay Elevated 
Asian Currencies Weaken Amid Dollar Strength
Most Asian currencies experienced a decline on Tuesday as the U.S. dollar held steady at a two-month high. This shift is largely attributed to ongoing speculations that the Federal Reserve will adopt a more cautious approach to interest rate cuts.
Federal Reserve's Influence on the Dollar
Recent comments from Federal Reserve officials have bolstered expectations for a slower pace of rate reductions. With resilience in U.S. inflation and labor market data, traders are now positioning themselves for a smaller 25 basis point cut in November. Fed Governor Christopher Waller emphasized the need for “more caution” in rate adjustments, reinforcing the idea of gradual cuts ahead. As of the latest reports, traders are pricing in an approximately 86% chance of a 25 basis point cut, with a 14% chance that rates will remain unchanged, according to CME FedWatch.
Asian Market Sentiment Deteriorates
The overall sentiment in Asian markets has been negatively affected by tepid reactions to China's recent stimulus measures. The lack of detailed information regarding these fiscal policies has contributed to a weakening of the Chinese yuan, which saw a 0.3% increase against the dollar, reaching near a one-month high.
Currency Performance Overview
Most Asian currencies have struggled recently, with the Japanese yen depreciating slightly against the dollar, hovering near the critical 150-yen mark. The Australian dollar faced marginal losses amid falling commodity prices. Conversely, the South Korean won gained 0.3% following the Bank of Korea's recent interest rate cut. The Singapore dollar showed slight growth, while the Indian rupee remained close to record highs of 84 rupees, despite higher-than-expected inflation data for September.
Conclusion
As the market braces for the Federal Reserve's next moves and evaluates China's economic strategies, the outlook for Asian currencies remains cautious amid persistent dollar strength.
