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Asian stocks mixed; dollar weakens before Fed rate decision
The Economic Times· 2026-01-28 00:54
Currency Market - The Malaysian ringgit, Thai baht, and South Korean won appreciated as the Bloomberg Dollar Spot Index fell to its lowest since February 2022, reflecting investor caution towards the US dollar amid unpredictable US policymaking [1][12] - The dollar's decline was exacerbated by President Trump's comments indicating a lack of concern over the currency's weakening, which has raised uncertainty regarding the Federal Reserve's independence [3][13] Stock Market - Asian stocks showed mixed results, with South Korea rising while Japan fell; US equity-index futures gained following reports of SoftBank's potential $30 billion investment in OpenAI [2][12] - A significant portion of S&P 500 companies, approximately one-third by market capitalization, are set to report earnings this week, including major players like Microsoft, Meta, and Tesla [11][13] Federal Reserve and Economic Outlook - The Federal Reserve is expected to announce its interest-rate decision soon, with indications that it may halt its rate-cutting cycle due to a steadier jobs market [9][10] - The Fed's messaging is likely to focus on a data-driven approach to future policy decisions, reflecting the current strength of the economy [10][13] Commodities Market - Gold traded slightly below its record high, silver advanced, and West Texas Intermediate crude edged up, all priced in dollars, indicating market reactions to currency fluctuations [8][13]