Asian Currencies Hold Steady as Indian Rupee Slides to Record Low on Fed Outlook 
Gold Prices Dip as Markets Absorb Dovish Fed Outlook; Silver Eases After Record High 
Brazil Holds Selic Rate at 15% as Inflation Expectations Stay Elevated 
Oil Prices Rebound in Asia as Venezuela Sanctions Risks Offset Ukraine Peace Hopes 
Japan Weighs New Tax Breaks to Boost Corporate Investment Amid Spending Debate 
Fed Rate Cut Signals Balance Between Inflation and Jobs, Says Mary Daly 
Ireland Limits Planned Trade Ban on Israeli Settlements to Goods Only 
Asian Currencies Steady as Fed Delivers Hawkish Rate Cut; Aussie and Rupee Under Pressure 
Indonesia–U.S. Tariff Talks Near Completion as Both Sides Push for Year-End Deal 
Asian Stocks Slip Ahead of Fed Decision as China Deflation Concerns Deepen 
Australia’s Labour Market Weakens as November Employment Drops Sharply 
S&P 500 Slides as AI Chip Stocks Tumble, Cooling Tech Rally 
Russia Stocks End Flat as Energy and Retail Shares Show Mixed Performance 
Oil Prices Edge Higher as U.S. Seizes Sanctioned Venezuelan Tanker 
ADB Approves $400 Million Loan to Boost Ease of Doing Business in the Philippines 
Wall Street Futures Slip as Oracle Earnings Miss Reignites AI Spending Concerns 
U.S. Dollar Slides for Third Straight Week as Rate Cut Expectations Boost Euro and Pound 
The U.S. dollar remained broadly steady on Wednesday as global markets turned their attention to shifting interest rate expectations and a renewed appetite for risk. Investors are increasingly positioning for potential U.S. rate cuts in 2026, a trend that could weigh on the greenback over the coming years.
The Australian dollar briefly reached a three-week high at $0.6576 before easing after GDP figures came in slightly below forecasts. Meanwhile, the euro gained momentum, breaking above its 50-day moving average following euro zone inflation data that was marginally stronger than expected. Early in the Asian session, the euro traded around $1.1629, supported by improved sentiment.
A major driver of market confidence was bitcoin’s sharp rebound. The world’s largest cryptocurrency surged roughly 6%, climbing past $91,000 and encouraging broader risk-taking among investors.
The Japanese yen held steady at 155.70 per dollar, buoyed by growing expectations of a domestic rate hike this month. This stands in contrast to the United States, where markets are pricing in an 85% chance of a Federal Reserve rate cut next week. Sterling traded at $1.3222, the Swiss franc remained firm at 0.8022 per dollar, and the New Zealand dollar hovered near $0.5730.
Looking ahead, analysts expect about 90 basis points of U.S. rate cuts before the end of 2026. Speculation is also building that White House economic adviser Kevin Hassett—known for favoring lower interest rates—could be nominated as the next Fed chair, a move that could further pressure the dollar.
Deutsche Bank strategist Tim Baker noted that December has historically been a weak month for the greenback, projecting a potential 2% decline. Analysts at OCBC share a similar outlook, anticipating a softer dollar as U.S. rate cuts narrow global yield differentials. Market veteran Brent Donnelly summed up sentiment, highlighting stretched dollar positioning and seasonal weakness, and revealing bullish positions on EUR/USD and NZD/USD pairs.
