Japanese Yen Depreciates Rapidly, RMB-JPY Exchange Rate Under Pressure! "Options Expiration Day" Triggers Severe Volatility in Global Markets

Global Risk Assets Rise Across the Board, Tech Stocks Lead the Gains

On December 19th, Eastern Time, market risk sentiment warmed. The three major stock index futures generally rose—Dow Jones Index futures up 0.14%, S&P 500 Index futures up 0.33%, Nasdaq 100 Index futures up 0.43%. The technology sector performed notably well, with Nvidia (NVDA) up 1.36%, Tesla (TSLA) up 1.13%, and Oracle (ORCL) surging 5.95% on positive developments in TikTok trading and OpenAI funding negotiations.

Bank of Japan Raises Interest Rates as Expected, but Hawkish Signals Fall Short, Yen Depreciates

The Bank of Japan announced a 25 basis point rate hike as scheduled, raising the policy rate to 0.75%, the highest since 1995. However, Governor Ueda Kazuo’s comments on the future rate path were relatively cautious, failing to meet market expectations for hawkish signals. As a result, the yen weakened rapidly against the dollar. USD/JPY rose 1.05% to 157.09, hitting a new high. Correspondingly, the RMB/JPY exchange rate also came under pressure, reflecting the global spread of yen depreciation.

Options Expiration Day Triggers Significant Market Volatility

Today coincides with the “Triple Witching”—the simultaneous expiration of stock, stock index futures, and options derivatives. According to Goldman Sachs estimates, over $7.1 trillion in notional value of options contracts will expire today, setting a record. About $5 trillion of these are linked to the S&P 500 index. This rare expiration event typically amplifies trading volume and price volatility, with analysts closely watching whether the S&P 500 can hold the critical support level of 6800 points.

Cryptocurrencies Rebound on Expiration Cycle, Next Week’s Options Expiry May Add Further Uncertainty

Driven by yen depreciation and increased risk appetite, Bitcoin (BTC) and Ethereum (ETH) prices rose collectively. At press time, Bitcoin is quoted at $87,870, up 0.70% in 24 hours; Ethereum is quoted at $2,950, up 0.12% in 24 hours. Notably, about $23 billion worth of Bitcoin options contracts are set to expire next Friday, which could further intensify volatility in the crypto market.

Precious Metals Show Divergence, Funds Quietly Shift

The precious metals market shows clear divergence. Platinum and palladium have risen for the seventh consecutive trading day, with platinum up 0.66% to $1,962 per ounce. In contrast, gold, which is at a historical high, has experienced a volatile pullback. Market participants believe this reflects a shift of funds from the overvalued gold sector to metals like platinum and palladium, which have more room for rebound, demonstrating a significant cross-commodity reallocation of capital.