Trump, Xi Focus on Trade and AI at White House Summit 
US 10-Year Treasury Yield at 6% Emerges as New Market Risk Threshold 
Dollar Holds Near Two-Month High as Yen Approaches 160 
Asian Currencies Mixed as Dollar Holds Near Two-Month High 
China’s ‘Lipstick King’ Says AI Won’t Replace Livestream Hosts 
Asian Stocks Fall as Surging Bond Yields Rattle Markets 
Canadian Dollar Faces Pressure as Fed-BoC Policy Gap Widens 
Gold Holds Near $4,275 as Rising Treasury Yields Fuel Fed Rate Hike Bets 
Fed Unveils Stablecoin Rules Under GENIUS Act 
RBI Uses $10 Billion Currency Swaps to Drain Excess Rupee Liquidity 
Mexico-US Trade Talks Delayed to October as Tariff Negotiations Continue 
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 
Soybean Futures Slip as Traders Await Trump-Xi Trade Signals 
Japanese Bank Stocks Surge as Bond Yields Fuel Rate Hike Bets 
Add as a preferred source on Google
The U.S. dollar traded steadily on Wednesday, hovering close to its lowest level since early October as fresh economic data reinforced concerns about a softening labor market and uncertainty over the Federal Reserve’s next interest rate move. Investors remain cautious, closely watching upcoming inflation data for clearer signals on the timing of potential rate cuts.
The dollar index, which tracks the greenback against six major currencies, stood at 98.193, near the October 3 low reached earlier in the week. The index is down roughly 9.5% so far this year, putting it on track for its steepest annual decline since 2017. Weakening expectations around U.S. monetary tightening have weighed heavily on the currency.
Recent labor market data showed the U.S. economy added 64,000 jobs in November, beating market expectations. However, the unemployment rate rose to 4.6%, with analysts noting that the prolonged government shutdown distorted the figures. Market participants remain unconvinced that the data materially alters the Federal Reserve’s policy outlook, especially with inflation figures still pending.
The Fed delivered a widely expected rate cut last week but signaled limited appetite for further easing, projecting just one additional cut in 2026. In contrast, financial markets are pricing in two cuts next year, though expectations for a January move remain low. Analysts suggest that unless inflation cools more sharply, a March rate cut may also be premature.
In currency markets, the euro traded near a 12-week high at $1.1751 ahead of the European Central Bank’s policy decision, where rates are expected to remain unchanged. Sterling held steady around $1.3424 following weak UK labor data that strengthened expectations for a Bank of England rate cut. Meanwhile, the Japanese yen firmed to around 154.56 per dollar as markets anticipate a Bank of Japan rate hike to a multi-decade high, driven by inflation pressures and concerns over a weak yen.
With multiple major central bank meetings and key inflation data ahead, global currency markets are likely to remain volatile as investors reassess interest rate trajectories into 2026.
