Yen strengthens on BoJ decision, Gold near ATH

PBOC

The yuan's recent strength was supported by the PBOC's decision to keep its benchmark loan prime rate unchanged, defying some expectations of further rate cuts aimed at stimulating the economy. This decision comes despite a series of weak economic indicators in China.

However, media reports suggest that the PBOC has instructed local banks to purchase dollars and curb excessive yuan strength, as a stronger currency could negatively impact Chinese exports.

Dollar

Both the dollar index and dollar index futures saw modest declines during Asian trading, continuing their downward trend from the previous session as markets anticipated lower U.S. interest rates.

BOJ

The Japanese yen was one of the stronger performers, gaining after the Bank of Japan maintained its interest rates and signaled expectations for steady inflation growth and continued economic expansion.

Asian stocks advanced today, following Wall Street's strong performance, as investors reacted positively to a substantial rate cut by the Federal Reserve. Japanese stocks led the region, though they pared early gains after the Bank of Japan kept interest rates steady while forecasting continued inflation growth.

Meanwhile, Chinese stocks underperformed as the People's Bank of China held its benchmark lending rate unchanged, despite mounting calls for additional stimulus measures.

Gold

Gold prices continue upbeat momentum as markets opened optimistically this Friday. Spot gold reached a record high near $2,609, while December gold futures climbed to $2,618. Increased safe-haven demand, fueled by tensions in the Middle East, also contributed to the rally.