Asian Currencies Trade Mixed as Yen Hovers Near 40-Year Low, Dollar Holds Firm on Fed Outlook 
S&P Affirms Brazil’s BB Credit Rating with Stable Outlook Amid Fiscal Challenges 
Australian Household Spending Rebounds Strongly in May as Travel and Dining Drive Consumer Growth 
Gold Price Ends Lower for Fourth Week Despite Rebound as Fed Rate Hike Bets Strengthen 
Oil Prices Drop as Strait of Hormuz Shipping Recovers 
Gold Prices Fall Below $4,000 as Strong Dollar, Fed Rate Hike Bets Weigh on Bullion 
Bank Regulation Rollbacks in the U.S. and UK Could Increase Financial Risks, Study Warns 
South Korea’s KOSPI Plunges as Apple Price Hikes and OpenAI IPO Delay Shake AI Chip Stocks 
U.S. Dollar Reaches One-Year High as Tech Sell-Off and Fed Rate Hike Expectations Support Demand 
Wall Street Ends Mixed as Micron Surges, Apple Drops After Price Hikes 
SpaceX Eyes Starlink Mobile Phone Service to Challenge Verizon, AT&T, and T-Mobile 
South Korea’s KOSPI Jumps Over 5% as Samsung, SK Hynix Rally on Micron Earnings Boost 
Trump Requests $11 Billion More in Farm Aid as Rising Costs Pressure U.S. Farmers 
Morgan Stanley Sees Chinese Auto Market Recovery Gaining Momentum in Late Summer 
US Dollar Slips After PCE Inflation Data as Fed Rate Hike Expectations Stay Elevated 
Wall Street Ends Lower as AI Stocks Drag Markets, Fed Rate Outlook Shifts 
The U.S. dollar drifted toward its weakest weekly performance since late July as traders increased bets on further monetary easing from the Federal Reserve at its December 10 meeting. Although the dollar index inched up 0.1% to 99.624 on Friday, the slight rebound followed five straight sessions of losses that pushed the gauge to its steepest weekly drop in four months.
Market expectations for a Fed rate cut surged sharply over the past week. According to the CME FedWatch tool, futures now reflect an implied 87% probability of a 25-basis-point reduction in December, jumping from just 39% a week earlier. U.S. Treasury yields echoed the shift in sentiment, with the 10-year yield ticking up 0.8 basis point to 4.0037% after sliding for five consecutive days and briefly dipping below the 4% mark twice.
In Asia, the Japanese yen hovered between gains and losses, last trading 0.1% weaker at 156.385 per dollar. Stronger labor market and inflation data reinforced expectations of near-term monetary tightening in Japan, even as persistent yen weakness keeps intervention risks elevated. Tokyo consumer prices rose 2.8% in November, surpassing economists’ forecasts and remaining above the Bank of Japan’s 2% target. Analysts at Capital Economics noted that with core inflation expected to remain above 3%, the BOJ is likely to resume tightening in the coming months.
The yen remains on course for a third monthly decline as Prime Minister Sanae Takaichi pursues a 21.3 trillion yen ($135.4 billion) stimulus plan while the BOJ maintains its cautious stance on rate hikes.
Elsewhere, major currencies held steady. The euro traded around $1.1600 following comments from Ukraine’s President Volodymyr Zelenskiy about ongoing talks with the U.S. on a security framework to end the war with Russia. Sterling slipped 0.1% to $1.323 but is still heading for its strongest weekly performance since early August after U.K. finance minister Rachel Reeves announced £26 billion in tax increases to support welfare spending.
The Australian dollar rose to $0.6536 after private sector credit grew 0.7% in October, while the offshore yuan held firm at 7.074 per dollar, on track for its best month since August. The New Zealand dollar traded at $0.5725, easing slightly after its biggest weekly jump since late April.
