Fed Governor Stephen Miran Warns Tight Monetary Policy Threatens U.S. Economic Growth 
Japan, U.S. Speed Up Talks on $550 Billion Investment Deal Amid Tariff Pressure 
Japan Warns on Yen Volatility as Currency Surges Against Dollar 
Australian Central Bank Signals Tough Stance as Inflation Pressures Persist 
Asian Currencies Rise as Dollar Weakens Ahead of U.S. Payrolls Data; Aussie Hits Three-Year High 
Japan Signals Openness to Gradual BOJ Rate Hikes as Deflation Era Ends 
Gold and Silver Prices Rise as Falling U.S. Yields Signal Softer Economy Ahead of Key Jobs Data 
Yen Strengthens as Japan Election Boosts Confidence, Dollar Wavers Ahead of U.S. Jobs Data 
India–US Trade Deal: Digital Tax Removal and $500 Billion Purchase Commitment Signal Major Policy Shift 
U.S.–Taiwan Trade Agreement Sets 15% Tariff, Boosts Energy and Semiconductor Investment 
Asian Markets Slip as Tech Stocks Tumble Ahead of Key U.S. Inflation Data 
Nikkei 225 Surges Past 58,000 as Japan Stocks Rally on Takaichi Stimulus Boost 
Gold Prices Steady as Markets Await Key U.S. Inflation Data 
China Signals Strategic Rare Earth Push Amid Rising U.S. Competition 
House Votes to End Trump’s Canada Tariff Emergency, Senate Showdown Looms 
Asian currencies edged lower on Friday as the U.S. dollar steadied, with traders closely monitoring upcoming U.S. consumer price index (CPI) data for signals on the Federal Reserve’s interest rate outlook. Despite the daily pullback, most regional currencies remained on track for weekly gains, while the dollar faced overall weekly losses amid growing uncertainty surrounding U.S. monetary policy.
The Japanese yen emerged as the top-performing Asian currency this week, supported by renewed speculation of government intervention in the foreign exchange market. Although the USD/JPY pair rose 0.2% on Friday, it was down roughly 2.6% for the week, marking its strongest weekly performance since November 2024. Hawkish remarks from Japanese officials boosted the yen, helping investors overlook fiscal concerns tied to Prime Minister Sanae Takaichi’s spending policies.
The Australian dollar also posted strong gains, with AUD/USD climbing 1% and reaching a three-year high after firm signals from the Reserve Bank of Australia suggested a tighter monetary policy stance. Meanwhile, the South Korean won strengthened, with USD/KRW falling 1.4% this week, driven by increased foreign inflows into domestic equity markets, particularly chip stocks benefiting from the artificial intelligence boom.
China’s yuan saw modest movement, as USD/CNY edged higher on Friday but remained down 0.4% for the week. Support came from consistent midpoint fixes by the People’s Bank of China, keeping the currency near a three-year high. The Indian rupee traded flat for the week, while the Singapore dollar gained ground, with USD/SGD down 0.6%.
The U.S. dollar index ticked up slightly in Asian trading ahead of January inflation data. Although headline and core CPI are expected to show mild easing, investors remain cautious after stronger-than-expected nonfarm payrolls data earlier this week. The dollar remains pressured, particularly following Kevin Warsh’s nomination as the next Federal Reserve Chair, adding further uncertainty to the U.S. interest rate trajectory.
