The euro rose in European trading on Wednesday against a basket of global currencies, attempting to recover from a three-month low against the U.S. dollar. The single currency is on track for its first gain in six sessions, supported by buying activity at lower levels and by the pause in the dollar’s recent rally in foreign-exchange markets.

Easing inflation across Europe in October reduced pressure on European Central Bank policymakers and revived expectations for a potential rate cut in December.

Price Overview

• EUR/USD rate today: The euro rose 0.15% to 1.1498 dollars from the opening level of 1.1482, after touching an intraday low of 1.1477.

• On Tuesday, the euro fell 0.3% against the dollar—its fifth straight daily loss—hitting a three-month low at 1.1473 amid persistent selling pressure.

U.S. Dollar

The dollar index fell 0.15% on Wednesday, retreating from a three-month high of 100.25 points, reflecting a pause in the U.S. currency’s recent uptrend against major and minor peers.

Beyond profit-taking, the dollar eased ahead of key U.S. data due later in the day on private-sector employment in October, which is expected to offer fresh insight into labor-market conditions.

Negative Pressure

Despite the euro’s current rebound, the common currency remains under downward pressure as investors continue to favor the U.S. dollar as the most attractive asset in the market. Persistent concerns over a prolonged interest-rate gap between the U.S. and Europe also weigh on sentiment.

European Interest Rates

• Data released late last week confirmed a slowdown in headline inflation across the euro area in October, as expected, while core inflation remained sticky—reducing pressure on the ECB to maintain its restrictive stance.

• Following those figures, money-market pricing for a 25-basis-point ECB rate cut in December rose from 10% to 25%.

• Investors now await further economic data from Europe and comments from ECB officials to reassess the outlook for monetary policy.

The Japanese yen rose in Asian trading on Wednesday against a basket of major and minor currencies, extending gains for the second consecutive session against the U.S. dollar. The move reflects a continued recovery from its eight-month low, supported by safe-haven demand amid a broad sell-off in global equity markets.

Minutes from the Bank of Japan’s September meeting showed that a growing number of policymakers believe conditions are now suitable for policy normalization, boosting expectations for a potential rate hike in December.

Price Overview

• USD/JPY rate today: The dollar fell 0.45% to 152.96 yen, down from the opening level of 153.66, after touching a session high of 153.75.

• The yen closed Tuesday up 0.35% against the dollar, rebounding from an eight-month low of 154.48 earlier in the session.

Severe Losses

Following the sharp drop in U.S. equities on Wall Street amid mounting concerns about excessive valuations in artificial intelligence companies, global markets witnessed a widespread sell-off. The downturn triggered intensified selling pressure and heightened worries about the sustainability of recent record highs.

As a result, investors flocked to safe-haven assets such as gold, the Japanese yen, and U.S. Treasury bonds to hedge against increased volatility, while markets closely monitor statements from major central banks for signs of potential intervention or policy adjustments to calm the turmoil.

Bank of Japan

According to the minutes released Wednesday, an increasing number of Bank of Japan policymakers believe the conditions are ripe for a rate hike, with two members calling for an immediate increase.

During the two-day meeting ending September 19, the nine-member board kept interest rates steady at 0.5% for the fifth consecutive time, rejecting proposals from two hawkish members to raise borrowing costs to 0.75%.

With discussions now focused on the precise timing of the next hike, several members said it would not be too late to wait for “more accurate data” before acting.

The minutes highlight growing momentum within the board toward resuming rate hikes, as concerns ease that higher U.S. tariffs could derail Japan’s fragile economic recovery.

Japanese Interest Rate Outlook

• Although Bank of Japan Governor Kazuo Ueda sent his strongest signal yet last week that a rate hike could come in December, markets remain cautious about the central bank’s gradual approach.

• The probability of a 25-basis-point rate increase at the December meeting rose from 50% to 60%.

• Investors now await additional data on inflation, unemployment, and wage trends to reassess the outlook for monetary policy in Japan.

Gold prices fell on Tuesday as the U.S. dollar strengthened against most major currencies, reaching its highest level in five months.

Markets continue to monitor the flow of third-quarter 2025 corporate earnings, with companies such as Uber and Pfizer releasing their results today.

Federal Reserve officials Mary Daly and Lisa Cook stated that a potential interest rate cut at the December meeting remains under consideration.

Investors are awaiting the ADP private-sector employment report on Wednesday, while the ongoing government shutdown has delayed the release of key economic data.

The monthly nonfarm payrolls report and the Fed’s preferred inflation gauge are also scheduled for release on Friday, though publication could be postponed due to the shutdown.

Meanwhile, the U.S. dollar index rose 0.4% to 100.2 points by 20:12 GMT, hitting a session high of 100.2 and a low of 99.7.

As of the same time, spot gold contracts declined 1.7% to 3,943.3 dollars per ounce.

U.S. stock indexes declined on Tuesday as uncertainty over artificial intelligence company valuations weighed on the sector.

Markets continue to monitor the flow of third-quarter 2025 corporate earnings, with companies such as Uber and Pfizer releasing their results today.

Federal Reserve officials Mary Daly and Lisa Cook stated that a potential interest rate cut at the December meeting remains on the table.

Investors are awaiting the ADP private-sector employment data on Wednesday, while the ongoing government shutdown has delayed the release of key economic indicators.

The monthly nonfarm payrolls report and the Fed’s preferred inflation gauge are also scheduled for release on Friday, though publication could be postponed due to the shutdown.

As of 16:51 GMT, the Dow Jones Industrial Average fell 0.4% (or 185 points) to 47,152, the S&P 500 dropped 0.8% (or 56 points) to 6,796, while the Nasdaq Composite declined 1.4% (or 320 points) to 23,515.