Dollar Rebounds as Asia Intervenes | Global Market Update Dec 4

The U.S. dollar regained some strength mid-week after officials across Asia showed growing discomfort with rapid currency moves, helping the greenback break a nine-day losing streak. Precious metals, including silver—which had briefly touched a record high—retreated as the dollar stabilized. The Chinese yuan pulled back after the PBOC set a weaker-than-expected midpoint for a sixth straight session, signaling concern about overly fast appreciation.

In Japan, long-term government bond yields eased from record highs following comments from senior officials and BOJ Governor Kazuo Ueda, who cautioned that uncertainty remains around Japan’s neutral rate ahead of this month’s anticipated rate hike. Strong demand at a 30-year JGB auction added to the cooling effect. India’s rupee, meanwhile, slid to a historic low past 90 per dollar, increasing pressure on the RBI as it heads into a meeting where a rate cut is widely expected.

Equity markets traded mixed: most Asian stocks were subdued, except Japan’s Nikkei 225, which surged on a strong rebound led by Fanuc’s 12% rally after announcing a collaboration with Nvidia. European futures rose modestly as traders awaited construction PMIs across major economies and several long-dated government bond auctions in France and the UK.