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Yen Pulls Back After Rally as Fed Rate Cut Bets Support Dollar Stability 
ECB Expands Euro Liquidity Backstop to Strengthen Global Role of the Euro 
U.S. Stocks End Mixed as January CPI Cools, Treasury Yields Slide 
Japan, U.S. Speed Up Talks on $550 Billion Investment Deal Amid Tariff Pressure 
U.S.–Taiwan Trade Agreement Sets 15% Tariff, Boosts Energy and Semiconductor Investment 
Oil Prices Steady as Iran-U.S. Nuclear Talks and OPEC+ Output Plans Shape Market Outlook 
MOEX Russia Index Closes Flat as Gold Surges and Ruble Strengthens 
Japan Coalition Urges BOJ Independence as Sales Tax Cut Plan Advances 
Asian Stock Markets Trade in Narrow Range as Japan GDP Misses Forecasts, Hang Seng Gains 
Gold Prices Steady Above $5,000 as Markets Eye Fed Minutes and PCE Inflation Data 
Fed Governor Stephen Miran Warns Tight Monetary Policy Threatens U.S. Economic Growth 
U.S. Inflation Cools in January as Gas Prices Fall, Core CPI Signals Sticky Price Pressures 
U.S. Stock Futures Edge Higher Ahead of Holiday as Investors Await Key Economic Data 
UK House Prices Hold Steady in February as Rightmove Reports Post-Budget Market Stability 
Gold Prices Steady as Markets Await Key U.S. Inflation Data 
Yen Surges After Takaichi Election Win as Markets Eye U.S. Inflation Data 
Asian currencies weakened on Thursday as a stronger US dollar and hawkish signals from Federal Reserve officials weighed on regional foreign exchange markets. The South Korean won and Indian rupee led losses, while the Australian dollar outperformed after resilient domestic employment data supported expectations of further rate hikes by the Reserve Bank of Australia (RBA).
The US Dollar Index rose 0.1% after surging roughly 0.6% in the previous session, reflecting renewed demand for the greenback. US Dollar Index futures also climbed 0.1% in early Asian trading. The dollar’s strength followed the release of Federal Reserve meeting minutes, which indicated policymakers remain cautious about inflation and are prepared to keep interest rates higher for longer. Some officials even signaled openness to additional rate hikes if price pressures persist.
The hawkish tone reinforced expectations that US monetary policy will remain restrictive in the near term, placing pressure on higher-beta Asian currencies. Investors are now closely watching the upcoming US Personal Consumption Expenditures (PCE) price index data, the Fed’s preferred inflation gauge, for further clues on the future interest rate path.
In currency markets, the USD/KRW pair jumped 0.6%, highlighting weakness in the South Korean won. The USD/INR gained 0.4%, while the offshore Chinese yuan saw USD/CNH edge up 0.2%. The Singapore dollar also slipped, with USD/SGD ticking 0.1% higher. The Japanese yen weakened as USD/JPY rose 0.2%. Trading volumes remained subdued across parts of Asia due to Lunar New Year holidays, contributing to thinner liquidity conditions.
In contrast, the Australian dollar gained ground, with AUD/USD rising 0.2% after data showed Australia’s unemployment rate held steady at 4.1% in January. Although employment growth slowed, the stable jobless rate signaled a tight labor market. This strengthened expectations that the RBA will maintain its hawkish stance following its recent rate increase, offering relative support to the Aussie dollar amid broader regional currency weakness.
