Dollar Recovers from Three-Week Low Against Yen

The U.S. dollar has recovered from a three-week low versus the yen on Wednesday, holding its ground against other major rivals as traders ponder the chances of a Federal Reserve interest-rate cut this month.

Won Stabilizes Following Martial Law Reversal

South Korea's won has stabilized following its plunge to a two-year low on Tuesday and then a partial recovery after President Yoon Suk Yeol first unexpectedly declared martial law and then abruptly reversed the decision just hours later following a standoff with parliament.

Central Bank May Have Supported Won

Dealers suggest that the country's central bank may have supported the won at Wednesday's open by selling dollars.

Yuan Pressured by Tariff Threats

The Chinese yuan is languishing near its lowest in more than a year in offshore trading, pressured by renewed tariff threats from incoming U.S. President Donald Trump, with traders watching how far Beijing is willing to let its currency slide.

Australian Dollar Weakens

Australia's dollar has weakened after data showed the economy expanded by less than economists estimated.

Euro Holds Ground Amid Political Crisis

The euro is holding its ground above its recent two-year trough, as French lawmakers prepare to vote on no-confidence motions later in the day that are all but certain to topple the government.

U.S. Dollar Index Adds 0.07%

The U.S. dollar index, which measures the currency against six top counterparts including the yen and the euro, has added 0.07 per cent to 106.39 at 0120 GMT.

Dollar Continues Recovery Against Yen

The dollar has added 0.18 per cent to 149.90 yen, continuing its recovery after dipping to 148.65 yen in the previous session for the first time since Oct. 11.

U.S. Job Openings Increase Moderately

The dollar received some support on Tuesday after data showed U.S. job openings increased moderately in October while layoffs declined, even as Federal Reserve officials on the day did not provide definitive guidance on what they intend to do at the conclusion of their next policy meeting in two weeks' time.

Traders Await Monthly Payrolls Data

Traders are waiting for crucial monthly payrolls data on Friday for more steer on the rates outlook, while a private payrolls report due later on Wednesday will offer something of a preview.

Market-Implied Odds of Rate Reduction

Market-implied odds of a quarter-point rate reduction on Dec. 18 last stood at 73 per cent, according to CME's FedWatch Tool.

Euro Little Changed Amid French Crisis

The euro is little changed at $1.0506, where it has been making a home this week as the political crisis in France comes to a head. On Nov. 22, it had tumbled as low as $1.03315.

Sterling Steady

Sterling is steady at $1.26645.

Won Little Changed After Initial Jump

The won is little changed at 1,413.80 per dollar after beginning Wednesday's trading with a 0.5 per cent jump that reversed almost all of the losses of the previous session, when it plunged as low as 1,443.40 per dollar for the first time since October 2022.

Offshore Yuan Edges Down

The offshore yuan has edged down to 7.2948 per dollar, inching back towards the previous day's low of 7.3145, the weakest since November of last year.

Australian Dollar Falls

The Aussie has fallen 0.4 per cent to $0.6461. Australia's economy grew at the slowest annual pace since the pandemic in the third quarter.