Dollar braces for crucial December with Fed meeting, Powell's successor pick

Economic Indicators - Japanese corporate spending on factories and equipment rose by 2.9% in July-September compared to the same period last year, indicating resilience in the economy despite U.S. tariffs [1][12] - The yen gained 0.2% to 155.84 per dollar, moving away from its 10-month low of 157.90, which raised concerns about potential yen-buying interventions from Tokyo [2][12] Currency Market Dynamics - Finance Minister Satsuki Katayama noted that recent fluctuations in the foreign exchange market and the rapid weakening of the yen are not fundamentally driven [4][12] - The dollar has experienced a broad pullback, providing some relief to the yen, although it remains only 0.9% stronger for the year and is near lows against the euro and sterling [6][12] Federal Reserve Outlook - Markets are pricing in an 87% chance of a 25 basis point rate cut by the Federal Reserve in the upcoming meeting, influenced by recent shifts in Fed easing expectations [7][12] - The dollar faced its worst week in four months, impacted by the potential nomination of Kevin Hassett as the next Fed chair and expectations of a dovish policy shift [8][12] Other Currency Movements - The euro slightly increased by 0.02% to $1.1600 against a weaker dollar, while the British pound remained stable at $1.3240 after a positive budget announcement [6][7][12] - The Australian dollar decreased by 0.08% to $0.6543, and the New Zealand dollar fell by 0.09% to $0.5733, reflecting broader market trends [9][12] Cryptocurrency Performance - Bitcoin dropped by 3.6% to $87,881.82, while ether fell by 5% to $2,871.59, indicating volatility in the cryptocurrency market [10][12]