U.S. 10-Year Treasury Yield Hits 2007 High as Fed Rate Hike Bets Rise 
Dollar Holds Near Two-Month High as Yen Approaches 160 
Gold Prices Fall as Treasury Yields Rise on Fed Rate Hike Bets 
China’s ‘Lipstick King’ Says AI Won’t Replace Livestream Hosts 
US Comfortable With Canada Trade Standoff as Import Bans Loom 
US 10-Year Treasury Yield at 6% Emerges as New Market Risk Threshold 
Fed’s Hammack Says Bond Yield Surge Is Not Driven by Inflation Fears 
Asian Stocks Fall as Bond Yields Surge Ahead of Trump-Xi Summit 
Japan Private-Sector Growth Slows as Domestic Demand Weakens 
Gold Holds Near $4,275 as Rising Treasury Yields Fuel Fed Rate Hike Bets 
Asian Currencies Mixed as Dollar Holds Near Two-Month High 
European Stocks Fall as Bond Yields and Geopolitical Risks Weigh 
Australia Unemployment Hits Five-Year High Despite Strong Jobs Growth 
Wall Street Ends Flat as Oil, Treasury Yields and Fed Jitters Rattle Markets 
Oil Prices Ease as Iran Tensions Clash With Diplomacy Hopes 
Trump, Xi Focus on Trade and AI at White House Summit 
Add as a preferred source on Google
Most Asian currencies traded within tight ranges on Friday, while the U.S. dollar remained firm near a six-week high, supported by strong U.S. economic data and fading expectations for imminent Federal Reserve rate cuts. The U.S. Dollar Index was largely flat during Asian trading hours after climbing to its highest level since early December overnight, reflecting continued demand for the greenback. U.S. Dollar Index futures were also little changed around 03:35 GMT, signaling cautious positioning ahead of further economic cues.
Recent U.S. macroeconomic releases reinforced the dollar’s strength. Initial jobless claims unexpectedly fell to 198,000 last week, well below market forecasts of 215,000, underscoring resilience in the U.S. labor market. This data has pushed traders to reassess their outlook for Federal Reserve policy, with expectations for the first interest rate cut now shifting toward mid-year rather than the early months of 2026. Comments from several Federal Reserve officials added to this sentiment, as policymakers emphasized a willingness to keep rates steady, citing stabilizing employment conditions and persistent inflation pressures.
In Asia, the Japanese yen showed mild stability after hovering near 18-month lows. The USD/JPY pair slipped around 0.3%, supported by verbal intervention from Japanese government officials seeking to curb excessive yen weakness. Analysts noted that the Bank of Japan is increasingly mindful of the yen’s impact on inflation. However, speculation over a potential snap election under Prime Minister Sanae Takaichi has kept the currency under pressure, as markets fear looser fiscal policy could weigh further on the yen.
Elsewhere, the South Korean won weakened slightly, with the USD/KRW pair rising about 0.2% and heading for a weekly gain of over 1%, despite brief support from comments by U.S. Treasury Secretary Scott Bessent earlier in the week. The Chinese yuan remained largely steady, with both the onshore USD/CNY and offshore USD/CNH pairs showing minimal movement. The Indian rupee and Singapore dollar also traded flat, reflecting broader regional caution.
Meanwhile, the Australian dollar edged modestly higher, with AUD/USD up around 0.1%, as investors balanced global risk sentiment against domestic factors. Overall, Asian currency markets remained subdued, tracking U.S. dollar strength and evolving expectations around Federal Reserve interest rate policy.
