Bitcoin, which has endured a turbulent start to December after an even more painful November, extended its rebound with a further 2% rise to about $93,634—its highest level in two weeks. The token had shed more than $18,000 last month as outflows hit record levels, marking its steepest monthly dollar loss since the crypto market turmoil of May 2021.
Market analyst Tony Sycamore of IG noted that bitcoin’s prospects remain constructive as long as it stays above the $80,537 support level. A move toward the $95,000–$100,000 range is possible, he said, though he would “shift to a more neutral bias” at those levels.
Across major currencies, the euro continued to benefit from dollar softness. The single currency, up over 12% this year, advanced to $1.1640 after clearing its 50-day moving average. A mild upside surprise in euro zone inflation and rising expectations of U.S. rate cuts have helped reinforce the euro’s strength. With the European Central Bank set to meet in two weeks, investors broadly expect policymakers to hold interest rates steady, even as U.S. markets price in about 90 basis points of cuts before the end of 2026.
In the Asia-Pacific region, the Australian dollar reached $0.6584—its highest level since late October—following GDP data that undershot forecasts. The Reserve Bank of Australia is due to meet next week and is widely expected to pause on policy.
India’s rupee, however, broke through the 90-per-dollar mark as weak trade and capital flows overpowered optimism surrounding the country’s strong economic expansion. The yen held steady around 155.70 per dollar amid mounting expectations of a Bank of Japan rate hike this month, contrasting with the Federal Reserve, where markets see an 85% chance of a rate cut next week.
Sterling edged up to $1.3235, the Swiss franc was little changed at 0.8017 per dollar, and the New Zealand dollar hovered near $0.5753.
Political developments in Washington also hung over the market, as investors considered the prospect of White House economic adviser Kevin Hassett emerging as the next Federal Reserve chair. Hassett, a former Fed economist seen as supportive of faster rate cuts, could reinforce the downward pressure on the dollar if nominated. President Donald Trump has signaled he will announce his pick early in 2026.
Analysts continue to see room for further dollar weakness into the year’s end. Deutsche Bank strategist Tim Baker suggested the currency could fall another 2% in December, a month in which it has historically struggled. The dollar index slipped to 99.20 and is on track for a nearly 9% annual decline.
OCBC strategists also expect a softer dollar heading into 2026 as U.S. monetary easing narrows its yield advantage. Brent Donnelly of Spectra Markets summed up the prevailing sentiment: with the market crowded into long-dollar positions, U.S. fiscal strains lingering, and rate differentials poised to shrink, he favors going “long EUR/USD and NZD/USD.”