The Japanese yen rose in Asian trade on Friday, extending its recovery for a second consecutive session from a nine-month low against the US dollar, supported by active buying at lower levels and by weakness in the US currency amid mounting concerns over an economic slowdown in the United States.

Despite today’s rebound, the yen remains on track to post a weekly loss, pressured by recent comments from Prime Minister Sanae Takaichi that signal a new phase of fiscal stimulus aimed at supporting Japan’s sluggish economic growth.

Price Overview

• USD/JPY slipped 0.15% to 154.31 yen, down from the opening level of 154.51 yen, after touching a high of 154.74 yen.

• The yen ended Thursday’s session up 0.2% against the dollar — its first gain in five days — rebounding from a nine-month low of 155.04 yen.

US Dollar

The US Dollar Index fell 0.1% on Friday, marking a second day of declines and approaching a two-week low, reflecting continued weakness in the greenback against a basket of major currencies.

Although the US government has reopened following the longest shutdown in the nation’s history, markets remain uneasy about the long-term economic impact of the prolonged closure.

Weekly Performance

For the week ending today, the yen is still down around 0.6% against the dollar and is on the verge of recording its third weekly loss this month.

Sanae Takaichi

Prime Minister Sanae Takaichi announced this week that her administration will introduce a multi-year fiscal target allowing greater flexibility in government spending — a shift that could weaken Japan’s commitment to restoring its public finances.

Takaichi also reiterated her call for the Bank of Japan to proceed cautiously and slowly with interest-rate hikes, stressing the need to balance supporting economic growth with maintaining price stability.

Analysts say her remarks may signal a new phase of expansionary fiscal policy, though they also present additional challenges for the Bank of Japan as it attempts to coordinate monetary policy with a more accommodative fiscal stance.

Japan Interest Rates

• Market pricing for a 25-basis-point rate hike by the Bank of Japan in December remains below 50%.

• Investors are awaiting fresh data on inflation, unemployment, and wage growth in Japan before reassessing rate expectations.

Bitcoin extended its recent losses on Thursday, declining in parallel with weakness across global markets and slipping back below the closely watched 100,000-dollar level.

The cryptocurrency was last seen trading near 98,350 dollars, down 3.1 percent on the day. A confirmed close below 100,000 dollars would mark the first such occurrence since May 7, representing the lowest closing level in six months.

From a technical standpoint, Bitcoin’s Relative Strength Index (RSI) currently stands at 40.14, which does not yet indicate oversold conditions, but is approaching that zone quickly. This is the weakest RSI reading since mid-March, pointing to rising selling pressure. Momentum indicators also reflect sustained weakness, with Bitcoin trading below its 20-, 50-, 100-, and 200-day moving averages — a broad signal that the trend has shifted decisively to the downside across all time frames.

Despite the pullback, investor appetite for crypto-linked assets remains elevated, particularly through exchange-traded funds that offer exposure to Bitcoin’s price movements without requiring direct ownership.

Among the most notable Bitcoin-linked ETFs are:

iShares Bitcoin Trust (IBIT)

ARK 21Shares Bitcoin ETF (ARKB)

Grayscale Bitcoin Trust (GBTC)

Valkyrie Bitcoin Fund (BRRR)

Invesco Galaxy Bitcoin ETF (BTCO)

VanEck Bitcoin Trust (HODL)

WisdomTree Bitcoin Fund (BTCW)

Fidelity Wise Origin Bitcoin ETF (FBTC)

Bitwise Bitcoin ETF (BITB)

Franklin Bitcoin ETF (EZBC)

US stocks declined during Thursday’s trading session, despite the official announcement that the longest government shutdown in US history has come to an end.

Early on Thursday, the House of Representatives voted in favor of the temporary funding bill, which was then signed by President Donald Trump, immediately reopening the government after a shutdown that lasted from early October until Wednesday.

Meanwhile, global markets remain divided over the Federal Reserve’s upcoming decision in the December meeting. Investors see a 53 percent chance of a 25-basis-point rate cut and a 47 percent chance of no change, compared with a 96 percent probability of a cut just one month ago.

As for trading, the Dow Jones Industrial Average fell by 0.8 percent, or 392 points, to 47862 points by 16:40 GMT. The broader S&P 500 declined by 1.21 percent, or 84 points, to 6767 points, while the Nasdaq Composite dropped 1.9 percent, or 455 points, to 22955 points.

Copper prices have retreated from their record highs in July, but analysts say the metal’s powerful rally is far from over. Strong demand is expected to outstrip supply soon, potentially setting the stage for another sharp upside move.

John Caruso, senior market strategist at RJO Futures, said copper is “a ticking time bomb waiting for an explosive price move,” pointing to a likely persistent structural deficit in supply, with demand expected to increase by nearly one million metric tons annually over the next decade.

And while the administration of President Donald Trump has moved away from clean-energy policies — eliminating billions of dollars in funding for industries where copper is a key component — global efforts to tackle climate change continue. The surge in electricity demand from artificial-intelligence data centers is also driving expectations of long-term copper consumption.

David Aspell, co-head of investing at Mount Lucas Management, said the broader demand outlook for copper remains “solid,” supported by AI infrastructure growth and rising requirements from data centers. “Demand is still strong, and it’s expected to stay that way,” he added.

Record Rally Then a Pullback

A Dow Jones analysis of FactSet data shows that benchmark US copper prices at this year’s settlement peak were up 44.5% from the end of 2024.

Copper hit an intraday record of 5.959 dollars per pound on 24 July. CQG data also show that three-month LME copper futures touched an unprecedented 11,200 dollars per metric ton on 29 October.

Speculation that the Trump administration might impose tariffs on imported refined copper pushed CME Comex prices in New York above their London counterparts.

“The usually stable spread between London and New York started to diverge when tariffs were floated,” Aspell said. “Comex prices climbed in anticipation of possible measures.”

Importers rushed to bring copper into the US ahead of potential tariffs and were willing to pay higher prices.

However, New York futures fell back after the Trump administration announced that tariffs would apply to processed — not refined — copper.

Comex prices are now down roughly 15% from their highs less than four months ago.

Roqaya Ibrahim, senior commodities and energy strategist at BCA Research, said the ongoing risk of tariffs on refined copper will continue to influence the market.

She noted that the exemption for refined copper will be reassessed in summer 2026, adding that US copper is again trading at a premium to LME levels, signaling continued storage and stockpiling in New York.

Ibrahim expects the global copper market to remain “imbalanced” until the tariff decision is finalized, limiting any meaningful downside in 2025.

The Real Story Behind Copper Demand

Trump’s shift away from clean-energy priorities — cutting funding and encouraging oil, coal, and other fossil fuels — could weigh on demand for copper used across renewable-energy technologies.

But Caruso at RJO Futures said the “real story” is the soaring electricity consumption from AI data centers.

A 2024 US Department of Energy report, authored by Lawrence Berkeley National Laboratory, found that data centers used about 4.4% of total US electricity in 2023. That share is expected to rise to between 6.7% and 12% by 2028.

“The expectation is that electricity demand from AI data centers will continue rising and may double by the end of the decade,” Caruso said.

He added that capital spending on AI infrastructure “remains a dominant market theme with no signs of slowing.”

According to the International Energy Agency (IEA), the global copper market could face a supply shortfall of up to 30% by 2035, driven by mining challenges and soaring demand for electrification technologies.

“AI’s growth phase is still in its very early innings,” Caruso concluded. “In my view, that leaves copper with plenty of room to run.”