27/01/2026

BIZ & FINANCE TUESDAY | JAN 27, 2026 17 Dollar sinks on talk US may join efforts to support yen

HONG KONG: The dollar fell in Asian trade yesterday amid speculation US officials could join their Japanese counterparts to help support the yen after a recent sell-off, while equities started the week on a mixed note. Reports that the Federal Reserve Bank of New York had checked in with traders about the yen’s exchange rate sparked a surge in the Japanese currency, according to Bloomberg, pushing it up more than one percent to 153.89 per dollar – its strongest level since November. The yen has been sliding amid worries about Japan’s fiscal position, the central bank’s decision not to hike interest rates further and expectations that the US Fed will hold off cutting its own borrowing costs this week. The last time Japanese authorities stepped in to support their unit was in 2024 when it hit 160 to the greenback. The prospect of authorities stepping into financial markets saw the dollar retreat across the board, with the euro, pound and South Korean won also well up while the Singapore dollar hit an 11-year high. That in turn sent gold prices surging more than 2% and past US$5,000 for the first time. Talk of joint intervention was fanned yesterday by top currency chief Atsushi Mimura, who said Tokyo “will continue responding appropriately against FX moves, working closely with US authorities as needed, in line with the joint statement issued by the Japanese and US finance ministers last September”. His remarks came a day after Japanese Prime Minister Sanae Takaichi warned: “We will take all necessary measures to address speculative and highly abnormal movements.” Stephen Innes at SPI Asset Management said: “Early Asia saw the dollar pushed lower as rate-check chatter swirled around the Fed, and intervention-tinged language out of Tokyo reminded the market that yen weakness is no longer a free carry. “In thin early Asian liquidity, the yen jumped, and that was enough to knock the broader dollar back into the Asia open.” Lloyd Chan, at MUFG, added: “The balance of risks may point toward dollar vulnerability and heightened two-way volatility in USD/JPY as markets navigate intervention uncertainty and evolving policy expectations around BoJ policy stance and Japan Prime Minister Takaichi’s fiscal policy.” The weakening dollar helped send gold to a peak of US$5,111.07 per ounce. Silver broke US$100 on Friday and spiked

above US$109 yesterday. The precious metals have been hitting multiple records of late owing to a rush into safe havens by traders spooked by rising geopolitical concerns, including Donald Trump’s intervention in Venezuela and a recent warning to Iran. Strong central bank demand and elevated inflation have added to the mix, along with fresh worries of another US government shutdown. “Over the past few days, gold’s price action has been textbook safe-haven behaviour,” said Fawad Razaqzada, market analyst at Forex.com. “Underlying demand for protection is still there. Confidence in the dollar and bonds look a bit shaky.” The latest developments come ahead of the Fed’s next policy meeting this week, which is expected to see officials stand pat on rates, having cut in the past three. “We don’t expect to learn a lot at the January FOMC meeting. “The Fed is on hold but remains data dependent. “The balance of risks around the two mandates hasn’t changed much since December,” wrote Bank of America economists, referring to the bank’s goal of keeping a cap on inflation and supporting the jobs market. “Chairman Jerome Powell’s press conference might be dominated by questions about politics rather than policy. “On the latter, however, market pricing creates risks of a dovish surprise.” Trump has made no secret of his disdain for Powell, claiming there is “no inflation” and o Gold breaks US$5,000 while equities start week on mixed note

A saleswoman adjusts gold jewellery for sale at a shop in the China city of Lianyungang. – AFPPIC

Paris fell and Frankfurt was flat. Oil prices extended on Friday gains of almost three percent that came after Trump said a US “armada” was heading towards the Gulf and that Washington was watching Iran closely. Trump has repeatedly left open the option of new military action against Tehran after Washington backed and joined Israel’s 12-day war in June aimed at degrading Iranian nuclear and ballistic missile programmes. – AFP

repeatedly questioning the Fed chair’s competence and integrity. Equity markets struggled after a soft lead from Wall Street on Friday. Tokyo sank 1.8% owing to the stronger yen, which weighs on Japanese exporters, while Shanghai, Singapore, Seoul and Manila and Bangkok also retreated. Hong Kong, Taipei and Wellington rose. London opened on the front foot, while

Singapore expected to keep monetary policy unchanged as growth outperforms

Samsung said planning to start production of HBM4 chips next month

SINGAPORE: Singapore is expected to leave monetary policy unchanged at a review on Thursday, with the growth outlook supported by strong demand for semiconductor exports and inflation seen under control. Out of 16 analysts polled by Reuters, 15 expect the Monetary Authority of Singapore (MAS) to hold off making any changes this week. MAS left settings unchanged in July and October last year after easing in January and April. Singapore’s GDP rose 4.8% in 2025, above a government forecast in November of around 4% and its previous estimate of 1.5% to 2.5%. Singapore’s strong electronics purchasing managers’ index reading of 50.9 in December showed that the tech cycle had retained momentum, Economist Intelligence Unit Asia analyst Tay Qi Hang said. AI-related demand and rising memory chip prices should continue to benefit the semiconductor sector in coming months, he said. “The Q4 2025 growth outperformance coupled with stable core inflation at just above 1% in

conditions by letting the local dollar rise or fall against the currencies of its main trading partners within an undisclosed trading band, known as the Singapore dollar nominal effective exchange rate (S$NEER). It adjusts settings via three levers: the slope, mid-point and width of the band. Major central banks are expected to hold rates steady in the near term, although uncertainties about the US Federal Reserve’s independence remain a financial market concern. The sharply-divided Federal Reserve cut interest rates by 25 basis points at its December meeting but signalled that easing will be paused as it awaited clarity on the state of the job market, inflation and the economy. U.S. President Donald Trump has repeatedly criticised Fed chair Jerome Powell for not lowering rates more aggressively. The European Central Bank’s chief economist Philip Lane said in January that it will not debate any rate change in the near term if the economy stays on course. – Reuters

November has reduced near-term pressure to ease,” he said. Standard Chartered chief economist Edward Lee said there was no urgency to act this month with inflation under control. However, Lee said he expected MAS to tighten policy at its April review as the inflation cycle bottoms out and trade uncertainties ease. However, Bank of American economists said in a report on Friday that MAS could tighten policy as soon as Thursday’s review on signs that inflation is strengthening following December’s data, also released on Friday. They said MAS could raise its core inflation forecast range for 2026 by 50 basis points to 1% to 2%, from its current forecast range of 0.5% to 1.5%. The economists noted the data showed price increases of travel-related and other components more than offset a fall in raw food and beverage prices. MAS will update its inflation forecasts in Thursday’s monetary policy statement. Singapore manages monetary

SEOUL: Samsung Electronics plans to start production of its next-generation high-bandwidth memory (HBM) chips, or HBM4, next month and supply them to Nvidia, a person familiar with the matter told Reuters yesterday. Samsung has been trying to catch up with cross-town rival SK Hynix, a primary supplier for advanced memory chips crucial for Nvidia’s AI accelerators, after supply delays had hit its earnings and share prices earlier last year. Samsung shares climbed 2.2% while rival Hynix shares were down 2.9% in morning trade. The person declined to give details such as how many chips it plans to supply to Nvidia. A Samsung spokesperson declined to comment, while Nvidia was not immediately available for comment. South Korean newspaper Korea Economic Daily reported yesterday that Samsung passed HBM4 qualification tests for Nvidia and AMD and will start

shipping to Nvidia next month, citing chip industry sources. SK Hynix said in October it has completed HBM supply talks with major customers for next year. SK Hynix plans to begin deploying silicon wafers next month into a new fab, M15X, in Cheongju, South Korea, to produce HBM chips, an executive at the company told Reuters earlier this month, without elaborating on whether HBM4 will be part of the initial production. Both Samsung and SK Hynix are set to announce their fourth-quarter earnings on Thursday when they are expected to share details of HBM4 orders. Nvidia CEO Jensen Huang said early this month that the company’s next-generation chips, the Vera Rubin platform, is in “full production”, as the US company prepares to launch the chips, to be paired with HBM4 chips, later this year. – Reuters