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Asian Currencies Hold Firm as Dollar Rebounds on Fed Chair Nomination Hopes 
U.S. Eases Venezuela Oil Sanctions to Boost American Investment After Maduro Ouster 
Canada’s Trade Deficit Jumps in November as Exports Slide and Firms Diversify Away From U.S. 
EU Recovery Fund Faces Bottlenecks Despite Driving Digital and Green Projects 
Japan Election Poll Signals Landslide Win for Sanae Takaichi, Raising Fiscal Policy Concerns 
China Manufacturing PMI Slips Into Contraction in January as Weak Demand Pressures Economy 
JPMorgan Lifts Gold Price Forecast to $6,300 by End-2026 on Strong Central Bank and Investor Demand 
China Factory Activity Slips in January as Weak Demand Weighs on Growth Outlook 
Philippines Manufacturing PMI Hits Nine-Month High Despite Weak Confidence Outlook 
China Home Prices Rise in January as Government Signals Stronger Support for Property Market 
U.S. Government Faces Brief Shutdown as Congress Delays Funding Deal 
India Budget 2025 Highlights Manufacturing Push but Falls Short of Market Expectations 
UK Employers Plan Moderate Pay Rises as Inflation Pressures Ease but Persist 
Gold Prices Stabilize in Asian Trade After Sharp Weekly Losses Amid Fed Uncertainty 
Most Asian currencies edged higher on Tuesday, buoyed by optimism surrounding improving U.S.-China trade relations and expectations of a Federal Reserve rate cut later this week. The U.S. dollar weakened slightly as traders awaited the Fed’s two-day meeting, where policymakers are widely expected to reduce interest rates by at least 25 basis points amid signs of cooling inflation and a softer labor market.
The Japanese yen led regional gains, recovering from recent losses as investors focused on a meeting between Japanese Prime Minister Sanae Takaichi and U.S. President Donald Trump, as well as the Bank of Japan’s upcoming policy announcement. The yen’s USD/JPY pair slipped 0.3%, reflecting renewed demand for the safe-haven currency.
In South Korea, the won lagged behind its peers even as third-quarter GDP exceeded expectations, supported by stronger exports following an earlier trade deal with Washington. The USD/KRW pair rose 0.4%. Across the region, currencies traded within a narrow range, maintaining momentum from Monday’s gains after positive signals in U.S.-China trade negotiations lifted market sentiment.
The Chinese yuan also firmed, with the USD/CNY pair easing 0.1%—hovering near its strongest level since November 2024. The yuan’s resilience has been underpinned by firm midpoint fixes from the People’s Bank of China, as Beijing aims to enhance the competitiveness of its exports. Traders remained focused on the anticipated meeting between Trump and Chinese President Xi Jinping in South Korea, expected to build on the recently agreed trade framework.
Elsewhere, the Australian dollar rose 0.1%, while the Singapore and Taiwan dollars edged slightly lower. The Indian rupee weakened modestly after crossing the 88-per-dollar mark, with markets monitoring trade discussions between Washington and New Delhi amid ongoing tariff pressures.
Overall, sentiment remained cautious but optimistic as investors awaited both the Trump-Xi summit and the Fed’s policy direction.
