JPY soars as INR drops due Instability and Anticipated Economic Events
· Forex · QuoteReporter
Published: December 01, 2025
Market Overview
The Indian Rupee (INR) reached an all-time low against the US Dollar (USD) amid significant foreign capital outflows from India, highlighting concerns over the country’s economic stability. In contrast, the Japanese Yen (JPY) gained strength, buoyed by comments from Bank of Japan (BoJ) Governor Kazuo Ueda, who indicated that delaying a potential interest rate hike could lead to sharp inflation, reinforcing expectations of a forthcoming monetary policy shift.
In Europe, European Central Bank (ECB) Vice President Luis de Guindos stated that current interest rates are appropriate, while the Euro (EUR) struggled to maintain momentum around 1.1600. The market sentiment reflected a broader risk aversion, impacting currencies like the Australian Dollar (AUD), which fell below 0.6550 following disappointing Chinese PMI data. Meanwhile, the USD/CAD pair showed resilience despite upbeat Canadian GDP figures, as traders anticipated a potential Federal Reserve rate cut, which could influence the USD’s strength in the near term.
Today’s Economic Events
Today’s scheduled economic events will primarily impact the USD, making it the focal currency against major pairs like EUR/USD, GBP/USD, and USD/JPY.
1. **Currencies Affected**: The USD will be the most affected currency, with potential spillover effects on EUR/USD, GBP/USD, and USD/JPY. Weak or strong results from the S&P Global Manufacturing PMI and ISM Manufacturing PMI could lead to significant movements in these pairs.
2. **Expected Volatility and Market Reactions**: If the S&P Global Manufacturing PMI comes in below the forecast of 51.9, it could signal a slowdown in manufacturing, leading to bearish sentiment for the USD. Conversely, a strong ISM Manufacturing PMI reading above the forecast of 49.0 could bolster the dollar, resulting in volatility across these pairs. Fed Chair Powell’s speech is also likely to add to market uncertainty, especially if he hints at future monetary policy direction.
3. **Key Numbers Traders Will Be Watching**: Traders
- 09:45 USD: S&P Global Manufacturing PMI (Nov)
- 10:00 USD: ISM Manufacturing PMI (Nov)
- 10:00 USD: ISM Manufacturing Prices (Nov)
- 20:00 USD: Fed Chair Powell Speaks
Major Currency Pairs Performance
| Currency Pair | Price | Daily % | Weekly % | Monthly % |
|---|---|---|---|---|
| EUR/USD | 1.16118 | +0.15% | +0.37% | +0.11% |
| USD/JPY | 155.45600 | -0.52% | -0.89% | +3.14% |
| GBP/USD | 1.32105 | -0.16% | +0.82% | -1.44% |
| USD/CHF | 0.80321 | -0.09% | -0.61% | +1.39% |
| AUD/USD | 0.65448 | +0.20% | +1.26% | +0.52% |
| USD/CAD | 1.39858 | -0.30% | -0.85% | -0.35% |
| NZD/USD | 0.57327 | +0.14% | +2.03% | -0.10% |
Performance Charts
Best Daily Performer
Technical Analysis: 1. The AUD/USD pair is currently on an upward trajectory, as indicated by its position at 78% of its 20-day range and its positive daily, weekly, and monthly changes.
2. The pair is trading above both the 50-day and 200-day SMAs, suggesting a strong bullish momentum. The next key resistance level could be at around the 0.66 mark.
3. Given the current market trend and its strong performance, the short-term outlook for AUD/USD appears to be bullish, unless a reversal pattern emerges.
Worst Daily Performer
Technical Analysis: 1. The USD/JPY pair is currently experiencing a short-term bearish trend, as evidenced by its daily and weekly losses, however, the positive monthly change indicates a potential underlying bullish trend.
2. The pair is trading around the middle of its 20-day range, with key support and resistance levels likely around the 50-day and 200-day SMAs respectively.
3. The short-term outlook appears uncertain due to mixed signals, but continued trading below the 200-day SMA could further validate the bearish sentiment, while a move above the 50-day SMA could signal a possible bullish reversal.
Normalized Performance – All Majors (3 Months)
Disclaimer
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