Global economy LIVE | Yen hits lowest level against US dollar since 1990

The Social Security Administration announced an annual cost of living adjustment of 8.7% amid a rising inflation rate that has been punishing for Americans on fixed incomes. The adjustment represents the largest one-time increase since 1981, and the largest experienced by beneficiaries alive today. The increase that took effect this year was 5.9%.

A slowdown of economic growth and the US job market will be "required" to bring down inflation, the Federal Reserve said in notes released Wednesday, adding that the level is "unacceptably high." Fed officials also said inflation has "not yet responded" to increased interest rates, according to minutes of the US central bank's September meeting, and that "a significant reduction in inflation would likely lag that of aggregate demand."

The United States dollar hit a fresh 24-year peak against the yen on Thursday, gaining across the board, after a blistering U.S. inflation report that opened the possibility of a 100-basis-point interest rate hike at next month's Federal Reserve policy meeting.

World stocks slipped to a near two-year low Thursday as investors braced for key US inflation data that is likely to shape the size of the Federal Reserve's next interest rate hike. Japan's yen also dropped near 1998 levels.

Weak equities knocked MSCI's 47-country world index down for a seventh straight day. Europe's region-wide STOXX 600 index was down 0.6%, also down for a seventh straight session. It has fallen nearly 4.3 per cent in the last six days.

Toshiba shares registered a seven per cent surge in afternoon trade Thursday following a report that a domestic investor-led group was looking at a $19 billion bid to secure a deal. The move could lead to foreign activist shareholders being bought out after years of tension. Shares in Toshiba Corp are on track for their biggest one-day gain in more than a year after having risen about 17 per cent this year.

Moody’s Investors Service downgraded the long-term deposit ratings of five Pakistani banks — Allied Bank Limited (ABL), Habib Bank Ltd (HBL), MCB Bank Limited (MCB), National Bank of Pakistan (NBP) and United Bank Ltd (UBL) — to Caa1 from B3.

It's speculated that Xi would attempt to buck convention by appointing himself to a third five-year term as party chief. He will present a report to the congress that will outline objectives for the economy, trade, and technology for the next five years at the very least.

The quarterly profit of Taiwanese chipmaker TSMC increased by 80% due to high sales of its chips used in data centres and electric vehicles, but the company reduced its yearly investment budget by at least 10% and adopted a more cautious stance on future demand.

“The headwinds facing India’s economy are significant,” IMF India Mission Chief Nada Choueiri said in an interview to Kathleen Hays and Rishaad Salamat on Bloomberg Television, referring to expectations of more policy tightening, and no end in sight to the war in Ukraine. “These are issues of concerns to us.”

Voter surveys reveal that concerns like the conflict with the Palestinians are even outweighed by living expenses.

The unexpected decline of the British economy in August, as shown by the data, highlights Prime Minister Liz Truss's difficult task of delivering on her campaign promises to accelerate growth.

Indian education tech giant Byju's has reportedly decided to lay off around 2,500 of its employees as it struggles to improve its finances and book profits.

In a statement on Wednesday, the $22 million valued start-up said that the layoffs are a step to cut costs and achieve overall profitability.

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Retail inflation in India increased to 7.41 per cent in September and has now exceeded the Reserve Bank of India's target range of 2–6 per cent for nine consecutive months.

The retail inflation rate in August was 7 per cent.

In rural India, as per API, the price increase has been more abrupt. According to data from the National Statistics Office, consumer price index-based inflation (CPI) rose to 7.56 per cent in rural India in September while remaining at 7.27 per cent in urban India.

For three consecutive quarters, the headline inflation rate has exceeded the RBI's mandated tolerance range of 2–6 per cent. 

If the CPI-based inflation goes outside the 2–6 per cent range for three consecutive quarters the RBI is regarded to have failed in managing price rise under the flexible inflation targeting framework.

Indian rupee is holding its own against the US dollar. In contrast to the previous session's opening rate of 82.3150, the currency as per Bloomberg opened at 82.2800. 

It currently stands at 82.3.

In anticipation of important data that could aid investors in determining the size of rate hikes the Federal Reserve is expected to deliver over the rest of this year, the Indian rupee was tipped to open slightly higher against the dollar.

On Thursday, the yen stumbled close to a new 24-year low. Its overnight low was 146.98 per dollar, its lowest level since August 1998.

Currenty traded at 146.85.

The yen is currently trading just above last month's low of 145.90 per dollar, which led the Japanese government to step in and buy yen, and is just a hair away from its low of August 1998 of 147.64 per dollar.

On Thursday, gold prices fluctuated within a narrow range as market investors maintained their caution ahead of a crucial US inflation report that may determine the magnitude of the Federal Reserve's next interest rate hike.

As of 0239 GMT, the spot price of gold remained stable at $1,670.20 per ounce. American gold futures fell by 0.1 per cent to $1,676.50.