Business
Gold surpasses $5,000, yen strengthens on intervention fear
Gold surged past $5,000 per ounce on Monday, buoyed by safety flows amid dollar weakness following a turbulent week where tensions over Greenland and Iran rattled investors, while markets remained on tenterhooks after violent spikes in the yen.
The yen rose over 1% to 153.99 per dollar as of 0427 GMT, after sharp spikes on Friday sparked speculation over potential intervention. The New York Federal Reserve conducted rate checks on Friday, sources told Reuters, raising the chance of joint U.S.-Japan intervention to halt the currency’s slide.
“The market’s inclination is to short the yen but the possibility of co-ordination means it no longer is a one-way bet,” said Prashant Newnaha, senior rates strategist at TD Securities in Singapore.
The prospect of joint intervention to support the yen pulled the dollar lower and broadly lifted other currencies.
Japan’s Nikkei dropped about 2% while S&P 500 futures fell 0.25% and European futures were 0.27% lower as traders awaited the Federal Reserve’s policy meeting later in the week.
U.S. President Donald Trump provided temporary relief to markets last week by reversing tariff threats and downplaying potential forceful action against Greenland. However, further sanctions targeting Iran have reinforced market anxiety.
Increased U.S. pressure against Iran is pushing oil prices higher and lifting safe-haven gold to record peaks. Precious metals, including silver , have surged in a blistering rally so far this year, also aided by a softer dollar.
INTERVENTION CHATTER KEEPS YEN ALOFT
While authorities in Tokyo declined to comment on the yen’s wild swings, sources told Reuters about the rate checks on Friday, leaving traders on edge at the prospect of an intervention that could come any time.
Japanese Prime Minister Sanae Takaichi said on Sunday her government will take necessary steps against speculative market moves.
Carlos Casanova, senior Asia economist at UBP, said the mere expectation of potential intervention could, in itself, contribute to some strengthening of the currency.
“The Japanese yen is likely to stabilise to some extent – though the catalysts for significant appreciation remain limited – while long-term yields are expected to face continued pressure at their current elevated levels.”
A steep bond market rout in Japan last week had put the spotlight on Takaichi’s expansionary fiscal policy as she called a snap election that is due for February 8. The bond market has since calmed somewhat, but investors remain jittery.
The yen was broadly firmer against other currencies too on Monday, inching away from the record low against the euro and Swiss franc and multi-decade lows against sterling.
Charu Chanana, chief investment strategist at Saxo, said the rate-check style warning could help reset positioning and remind the market there’s a line near 159–160.
“With the dollar starting to look softer, this is actually a cleaner window for Japan to lean against yen weakness. Intervention works better when it’s going with the broader USD tide, not fighting it.”
The dollar index , which measures the U.S. currency against six rivals, fell as much as 0.2% to a four-month low of 96.996 after dropping 0.8% on Friday in its biggest one-day drop since August.
Investor focus this week will also be on the Fed. The central bank is expected to hold rates steady at a meeting overshadowed by a Trump administration criminal investigation of Fed Chair Jerome Powell, whose term ends in May.
In commodities, oil prices were little changed after rising about 3% on Friday, with traders weighing the impact of Trump pressuring Iran through more sanctions on vessels that transport its oil.
Brent crude futures were flat at $65.91 a barrel, while U.S. West Texas Intermediate crude stood at $61.1 per barrel.
Business
Afghanistan, Uzbekistan discuss expanding economic, trade and investment cooperation
For his part, Khojayev said Uzbekistan is prepared to invest in Afghanistan’s mining sector and increase imports of Afghan meat and cotton.
Afghanistan’s Deputy Prime Minister for Economic Affairs, Mullah Abdul Ghani Baradar, met on Sunday with Uzbekistan’s Deputy Prime Minister, Jamshid Khojayev, and his accompanying delegation at the Chahar Chinar Palace in the Arg to discuss expanding bilateral economic cooperation.
The two sides held talks on strengthening economic, trade, investment, and transit cooperation between Afghanistan and Uzbekistan.
Baradar said stronger and more stable relations between Kabul and Tashkent would not only serve the economic interests of both countries but also contribute to regional stability. He added that the Islamic Emirate is ready to use all available capacities to further strengthen and expand bilateral ties.
He emphasized the effective implementation of the joint action plan between the two countries, describing it as an important step toward boosting economic growth.
Baradar also identified several priority areas for cooperation, including removing obstacles to the movement of Afghan export vehicles to Uzbekistan, granting exemptions for Afghan transit goods arriving from China, Central Asia, and Russia, facilitating exports of Afghanistan’s agricultural products, fresh and dried fruits, food products, and valuable minerals to the markets of Central Asia, Russia, and China, increasing the capacity of transit infrastructure, expanding customs facilities, easing the issuance of visas for Afghan citizens, and enhancing cooperation in the energy sector and joint infrastructure projects.
He said broader cooperation between Afghanistan and Uzbekistan would not only elevate bilateral economic relations but could also serve as a model of good neighborly relations for other countries in the region.
For his part, Khojayev said Uzbekistan is prepared to invest in Afghanistan’s mining sector and increase imports of Afghan meat and cotton.
He also announced Uzbekistan’s readiness to build a $50 million zinc processing plant in Hairatan.
Khojayev added that the Uzbek delegation would work with relevant institutions of the Islamic Emirate in the areas of transport, energy, agricultural development, banking, trade, economic cooperation, and capacity-building for Afghan citizens.
Business
Over 205,000 Afghans visit Uzbekistan for trade and business in six months
Business
Pakistan’s trade deficit with neighbours surges to nearly $16 billion as exports to Afghanistan plunge
The decline in exports was largely attributed to reduced shipments to Afghanistan, Bangladesh and Sri Lanka.
Pakistan’s trade deficit with nine neighbouring countries widened by 30 percent in the 2025–26 fiscal year, reaching $15.93 billion, driven by declining exports to regional markets and rising imports, particularly from China.
According to the latest data released by the State Bank of Pakistan, the country’s trade gap with Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan and the Maldives increased from $12.26 billion in the previous fiscal year to $15.93 billion.
Pakistan’s total exports to the nine neighbouring countries fell by 11 percent to $3.95 billion, while imports from the region rose by 19.1 percent to $19.89 billion, highlighting a growing trade imbalance.
The decline in exports was largely attributed to reduced shipments to Afghanistan, Bangladesh and Sri Lanka. Trade with Afghanistan, including exports, has remained suspended since October 10, 2025, significantly affecting Pakistan’s regional export performance.
Exports to Afghanistan dropped by 68.9 percent to $243.69 million, down from $783.95 million in the previous fiscal year. Imports from Afghanistan also declined sharply by 74.9 percent, falling to $6.5 million.
China remained Pakistan’s largest regional trading partner. Exports to China increased by 8.4 percent to $2.68 billion, accounting for 68 percent of Pakistan’s exports to neighbouring countries. However, imports from China climbed 19.8 percent to $19.54 billion, representing 98 percent of Pakistan’s regional imports.
Trade with India remained limited despite a percentage increase in exports. Pakistan’s exports to India rose to $2.93 million, while imports from India declined 7.6 percent to $168.73 million.
Exports to Bangladesh fell 9.3 percent to $715.59 million, while exports to Sri Lanka declined 22.8 percent to $293.38 million during the fiscal year.
The latest figures underscore Pakistan’s growing dependence on imports, particularly from China, while declining exports to regional markets continue to widen the country’s trade deficit.
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