Weekly Outlook 7 December 2025

The Japanese yen index hovered near multi-year lows between December 5 and 7, despite the Bank of Japan signaling a possible rate hike this month. USD/JPY traded around 155.3, close to four-decade lows. U.S. and global equity indices stayed near record highs, while Japan’s Nikkei 225 dropped 1.05% amid concerns over tighter financial conditions.

The Australian Dollar Index closed at a 52-week high of 61.90 on 5 December, up 0.16% for the day. The surge followed a sharp shift in Reserve Bank of Australia expectations, with economists now forecasting no rate cuts through 2026. AUD/USD touched a two-month high of 0.6644 as the U.S. dollar weakened.