Rally led by tech and exporters
Asian equities pushed higher with Japan and South Korea leading gains as investors priced in a U.S. Federal Reserve rate cut this week. A weaker dollar buoyed exporters, while chipmakers extended momentum on AI demand hopes. Financials lagged on narrowing margin outlooks.
Dollar slips; gold steadies
The dollar slipped to multi-month lows against the euro and Aussie, reflecting bets on a series of Fed cuts into year-end. Gold held firm as yields eased, and oil traded range-bound amid mixed demand signals from China. Regional currencies, including the Indian rupee, ticked up, easing import cost pressures.
Bangladesh angle: import bills and remittances
For Bangladesh-linked portfolios, softer U.S. yields and a weaker dollar typically ease LC settlement costs for fuel and raw materials. Remittance flows can also benefit if the dollar’s slide stabilizes parallel market spreads. Exporters, however, may see tighter pricing power if global buyers hedge currency risk more aggressively.
What to watch next
Focus now shifts to the Fed statement and dot plot. Asia’s reaction will hinge on guidance for subsequent cuts and on U.S. growth signals. Any hawkish surprise could unwind today’s currency moves and pressure equities across the region.