Currencies

 There are three potential scenarios for the Australian dollar through mid-2025, contingent on U.S. policy under President-elect Trump, analysts at Bank of America (BofA) said in a note, stating a wide range of outcomes for the currency, reflecting uncertainties in global trade.

The U.S. is set to implement its third major crackdown on China’s semiconductor industry, targeting 140 entities with new export restrictions aimed at curbing China’s access to advanced chips and equipment vital for artificial intelligence and other high-tech applications.

Italy’s tax system is skewed in a way that lets society’s wealthiest 7% pay proportionately less tax than low and middle-income earners, a new study shows, fuelling inequality and hurting public finances in one of Europe’s most indebted nations.

France’s far-right National Rally (RN) party will likely back a no-confidence motion against the government in the coming days unless there is a “last minute miracle”, RN president Jordan Bardella said on Monday.

Most Asian currencies edged higher on Friday as the dollar weakened on persistent expectations of a rate cut by the U.S. Federal Reserve in December, while the Japanese yen surged after hotter-than-expected inflation data from Tokyo.

The yen weakened slightly through the Asia session. But at 151.59 per dollar, it is up 2.4% this week and has recovered losses suffered since the U.S. election. Markets see about a 55% chance the Bank of Japan hikes rates next month.

Most Asian currencies were largely unchanged on Wednesday, while the Japanese yen firmed against the dollar as markets were worried about the implications of new tariffs under incoming U.S. President Donald Trump. 

Most Asian currencies edged lower on Tuesday, with the Chinese yuan dropping to a four-month low against a stronger dollar after U.S. President-elect Donald Trump said he will impose additional trade tariffs on China, Mexico, and Canada.

The dollar retreated on Monday after surging for the past eight weeks. Bessent’s nomination as Treasury Secretary weighed on the dollar, amid some bets that he will be a voice of moderation in Trump’s administration.

Regional currencies have lost ground over the last few weeks, pressured by the strength in the dollar, as caution over a slower pace of interest rate cuts by the Federal Reserve weighed on sentiment. Traders were also on edge over just what U.S. President-elect Donald Trump’s policies will entail for Asian countries, especially China.