The Japanese yen fell in Asian trading on Thursday against a basket of major and minor currencies, extending losses for the fifth consecutive session against the US dollar and hitting its lowest level in nearly two weeks, pressured by Prime Minister Sanae Takaichi’s stimulus plans.

Japan’s new prime minister is preparing to announce a massive stimulus package aimed at supporting the world’s fourth-largest economy — a move that is likely to increase pressure on Bank of Japan policymakers and delay any near-term steps toward monetary policy normalization or interest rate hikes.

Price Overview

• Today’s yen rate: The US dollar rose 0.4% against the yen to ¥152.57 — its highest since October 14 — after opening at ¥151.97 and hitting a low of ¥151.82.

• On Wednesday, the yen ended slightly lower (down less than 0.1%) against the dollar, marking a fourth straight daily loss as investors continued assessing Takaichi’s potential economic policies.

New Stimulus Package

Government sources told Reuters that Prime Minister Sanae Takaichi is drafting an economic stimulus package likely to exceed 13.9 trillion yen ($92 billion) to help households cope with rising prices and inflation.

The sources added that the final size of the package is still being determined, with an official announcement expected early next month.

Japanese Interest Rates

• Takaichi, a supporter of flexible fiscal and monetary policies, said Tuesday that the details of monetary policy are up to the Bank of Japan.

• Economists generally believe the new prime minister will not obstruct the BOJ’s eventual rate hike, but most still expect the next increase to come no sooner than December.

• Finance Minister Satsuki Katayama said Wednesday that close coordination between the government and the Bank of Japan is essential to ensure the effectiveness of economic and monetary measures.

• The Bank of Japan is scheduled to announce its next monetary policy decision on October 30. Futures markets are pricing in roughly a 20% chance of a 25-basis-point rate hike to 0.75%.

The Canadian dollar rose on Wednesday, extending its gains after data released yesterday showed inflation came in higher than expected.

Canada’s annual inflation rate accelerated to 2.4% in September, driven mainly by a smaller year-on-year decline in gasoline prices compared with the previous month, as well as higher food prices.

This report marks the final major economic release before the upcoming Bank of Canada meeting later this month. Analysts and investors widely expect the central bank to cut interest rates for a second consecutive time.

Economists surveyed by Reuters had forecast annual inflation to rise to 2.3% in September after recording 1.9% in August.

Statistics Canada (StatsCan) reported that the Consumer Price Index (CPI) rose 0.1% month-on-month in September, following a similar 0.1% decline in August.

As of 21:03 GMT, the Canadian dollar strengthened 0.3% against the US dollar to 0.7141.

Australian Dollar

The Australian dollar also edged higher, up 0.1% to 0.6491 against the US dollar at 21:03 GMT.

US Dollar

The US dollar index was steady at 98.9 points as of 20:54 GMT, having touched a high of 99.1 and a low of 98.7.

Netflix shares fell sharply after the company reported weaker-than-expected revenue and earnings for the third quarter, while investors awaited Tesla’s results due after the market close.

Traders are looking for key signals from upcoming US inflation data later this week to gauge the Federal Reserve’s policy path, with expectations strongly leaning toward a rate cut at next week’s meeting.

Meanwhile, the US government shutdown has entered its 22nd day, though optimism is growing that it could end later this week.

Kevin Hassett, Director of the National Economic Council, told CNBC in an interview that the shutdown is likely to end within the week.

Analysts at Citigroup said expectations for an imminent resolution to the US government shutdown — along with progress toward a trade deal between Washington and Beijing — could help stabilize gold prices in the coming weeks.

The Global Precious Metals MMI Index surged by 14.44% in October, as all four major precious metals posted strong gains early in the month.

Gold once again set new record highs, silver briefly hit $54 per ounce before a sharp pullback, and both platinum and palladium approached multi-year highs.

The rally was driven by a combination of factors including the ongoing US government shutdown, renewed tariff concerns, and labor-market weakness — all of which spurred hedging demand for safe-haven assets.

What’s Driving Palladium’s Recent Rally — and Where Is It Headed?

According to Capital.com, palladium prices have jumped around 26% since early October, reaching about $1,500 per ounce, rising alongside platinum and amid looser global financial conditions.

Expectations of US interest-rate cuts and a weaker dollar also supported palladium as part of the “Gold + Liquidity” wave lifting precious metals broadly.

Because palladium is used almost exclusively in catalytic converters for gasoline engines, automakers and electronics producers in the US could face cost volatility.

Technical analysis from Monex identifies resistance between $1,500 and $1,520 per ounce, with forecasts calling for a generally bullish but volatile trading pattern.

Analysts at CPM Group said palladium’s strength is closely tied to platinum’s performance, though they warned that US labor-market weakness and persistent inflation could cap demand growth.

Platinum Nearing Its Highest Levels in Years

Platinum has been the top performer among precious metals in 2025, rising roughly 30% year-to-date to levels not seen since 2008, according to Monex.

Demand drivers include catalytic converters and fuel-cell technology, especially as usage expands in hybrid and heavy vehicles. Stricter emissions standards are also helping sustain automotive demand.

Mining supply remains limited, and analysts expect the platinum market to post its third consecutive annual deficit in 2025.

CPM said platinum recently reached its highest level since 2012 and could climb to between $1,750 and $1,850 per ounce in the coming months, though it cautioned that pullbacks and sideways movements are normal even in bull markets.

For US buyers, the firm recommends maintaining a cautiously optimistic outlook and implementing hedges gradually.

Why Did Silver Spike and Then Drop?

Silver climbed sharply to around $54 per ounce in mid-October, driven by safe-haven demand and strong industrial usage, before dropping about 6% to $51.9 per ounce on October 17 — its biggest one-day decline in months, according to the Economic Times.

The fall was linked to easing credit-market fears and calmer trade tensions, which reduced defensive buying, while a stronger US dollar and higher bond yields weakened momentum.

Despite the pullback, silver’s fundamentals remain strong: it’s up more than 70% year-to-date, supported by robust industrial demand from electronics, data-center, and energy sectors amid tight global supply.

The US recently added silver to its list of critical minerals, a move expected to encourage stockpiling and investment. Analysts expect silver to resume its upward trend once market volatility returns.

What Fueled Gold’s 2025 Surge?

Gold broke above the $4,000-per-ounce threshold on October 8, rising about 60% since January. Many US buyers now see the sharp rally as a major cost driver for hedging and metals budgets.

Like other precious metals, gold’s rise has been supported by traditional safe-haven factors and bullish Wall Street sentiment.

Even HSBC recently raised its year-end gold forecast, and most analysts expect the metal to stay supported unless an unexpected rebound in the US economy reduces demand for protection.

Experts describe the current stage as a late-cycle bull market — with potential corrections ahead, but no clear signs of collapse.

Lisa Shalett, Chief Investment Officer at Morgan Stanley, said, “Gold’s rally this year is unusual because both gold and equities are moving higher together.”

Key MMI Index Moves:

Palladium bullion rose 11.91% to $1,231 per ounce.

Platinum bullion gained 16.75% to $1,568 per ounce.

Silver bullion jumped 20.86% to $46.99 per ounce.

Gold increased 13.14% to $40.54 per ounce.

US stock indexes fell on Wednesday as investors focused on corporate earnings and awaited key inflation data.

Netflix shares dropped sharply after the company reported weaker-than-expected revenue and profit for the third quarter, while markets turned their attention to Tesla’s earnings, due after the closing bell.

Traders are also awaiting crucial US inflation figures later this week for clues on the Federal Reserve’s next move, with most expectations pointing toward a rate cut at the Fed’s upcoming meeting next week.

As of 16:00 GMT, the Dow Jones Industrial Average declined 0.2% (down 95 points) to 46,829. The S&P 500 fell 0.2% (down 12 points) to 6,723, and the Nasdaq Composite dropped 0.4% (down 96 points) to 22,858.