Morgan Stanley Sees Chinese Auto Market Recovery Gaining Momentum in Late Summer 
White House Seeks $87.6 Billion Emergency Funding for Iran War, Farmers, and Ebola Response 
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S&P Affirms Brazil’s BB Credit Rating with Stable Outlook Amid Fiscal Challenges 
U.S. Dollar Reaches One-Year High as Tech Sell-Off and Fed Rate Hike Expectations Support Demand 
Australia Jobs Growth Strengthens Rate Hike Outlook 
BOJ Hawk Signals Faster Interest Rate Hikes Amid Inflation Risks 
South Korea’s KOSPI Plunges as Apple Price Hikes and OpenAI IPO Delay Shake AI Chip Stocks 
Trump Requests $11 Billion More in Farm Aid as Rising Costs Pressure U.S. Farmers 
Asian Currencies Trade Mixed as Yen Hovers Near 40-Year Low, Dollar Holds Firm on Fed Outlook 
SpaceX Eyes Starlink Mobile Phone Service to Challenge Verizon, AT&T, and T-Mobile 
Oil Prices Rebound as Strait of Hormuz Tensions Return After Ship Attack Near Oman 
US Dollar Slips After PCE Inflation Data Eases Fed Rate Hike Expectations 
Bank Regulation Rollbacks in the U.S. and UK Could Increase Financial Risks, Study Warns 
Oil Prices Drop as Strait of Hormuz Shipping Recovers 
Oil Prices Drop as Middle East Supply Recovery Eases Market Concerns 
Gold Price Ends Lower for Fourth Week Despite Rebound as Fed Rate Hike Bets Strengthen 
The U.S. dollar weakened to near a two-month low during early Asian trading on Tuesday, as investors adopted a cautious stance ahead of several high-impact economic releases, most notably the delayed U.S. employment reports. The dollar index, which tracks the greenback against a basket of six major currencies, slipped 0.2% to 98.261, hovering close to its weakest level since October 17. Currency markets remained subdued as traders awaited fresh signals on the health of the U.S. economy and the future path of Federal Reserve interest rates.
Attention is firmly on the Bureau of Labor Statistics, which is set to publish combined U.S. jobs data for October and November after prolonged delays caused by the longest government shutdown in U.S. history. These figures are expected to provide clarity on labor market conditions during the shutdown period. Analysts believe the data could influence near-term dollar sentiment, especially after the Federal Reserve recently signaled a more cautious policy outlook. According to CME Group’s FedWatch tool, markets are pricing in a 75.6% probability that the Fed will keep rates unchanged at its January 28 meeting.
Beyond U.S. data, global monetary policy developments are also shaping foreign exchange markets. Several central banks are scheduled to announce rate decisions this week. The Bank of Japan is widely expected to raise interest rates by 25 basis points to 0.75%, while the Bank of England could cut rates by the same margin to 3.75%. Meanwhile, the European Central Bank, Sweden’s Riksbank, and Norway’s Norges Bank are all anticipated to hold rates steady.
In currency trading, the dollar edged 0.1% lower against the Japanese yen to 155.07. The euro held firm near $1.17535 amid optimism surrounding progress in Ukraine peace talks, while the British pound remained flat at $1.3376. The dollar also stayed near recent lows against the offshore Chinese yuan at 7.0371. Commodity-linked currencies such as the Australian and New Zealand dollars posted modest gains, supported by expectations that both central banks are done cutting rates.
Cryptocurrency markets saw limited upside, with Bitcoin rising slightly to around $86,420 and Ethereum edging higher near $2,964, reflecting a cautious but stable risk sentiment among investors.
