U.S. Blockades Strait of Hormuz as Oil Prices Surge Past $100 
BCA Research Warns U.S.-Iran Ceasefire Could Collapse, Maintains Cautious Equity Outlook 
China's Inflation Data Misses Forecasts as Consumer Prices Slow in March 
U.S. Inflation Surges in March as Iran War and Tariffs Drive Prices Higher 
Goldman Sachs, ANZ Cut Oil Forecasts Amid U.S.-Iran Ceasefire Hopes 
Bank of America Maintains Forecast for Two Fed Rate Cuts in 2026 Despite Inflation Risks 
U.S. Futures Plunge as Iran Ceasefire Talks Collapse and Hormuz Blockade Looms 
White House Warns Staff Over Insider Trading Amid Suspicious Oil Market Bets 
U.S. Markets Post Strong Weekly Gains Despite Middle East Tensions and Rising Energy Prices 
Bank of Japan Governor Signals Accommodative Stance Amid Negative Real Rates 
Bank of Korea Governor Nominee Warns of Action if Korean Won Weakens Further 
Middle East Conflict Threatens Global Economic Stability, World Bank Warns 
Gold Prices Rise on Weaker Dollar and Ceasefire Hopes 
Oil Prices Surge as U.S. Imposes Blockade on Iranian Shipping Amid Ongoing Middle East Tensions 
Trump Claims Oil Tankers Heading to U.S. Amid Iran War and Strait of Hormuz Crisis 
Spain's Sanchez Visits China to Deepen Trade Ties Amid U.S. Tensions 
Asian currencies broadly declined on Monday as the U.S. dollar attracted safe-haven demand following the collapse of U.S.-Iran peace negotiations and mounting concerns over a potential American blockade of Iranian ports. The breakdown in diplomatic efforts renewed fears of escalating conflict in the Middle East, rattling regional forex markets already under pressure from elevated U.S. inflation data.
Most major Asian currencies posted losses against the greenback. The Japanese yen, Chinese yuan, Australian dollar, South Korean won, Singapore dollar, and Indian rupee all weakened, with the rupee facing particularly sharp pressure due to India's heavy dependence on energy imports. A potential Hormuz blockade threatens to deepen that vulnerability, especially after the Iran conflict already disrupted roughly 20% of global energy supplies.
The dollar index and dollar index futures each climbed approximately 0.4%, buoyed both by geopolitical uncertainty and last Friday's U.S. consumer price index report, which revealed a significant inflation spike driven largely by surging energy costs. The data reinforced expectations that the Federal Reserve will hold interest rates steady for an extended period, further boosting the dollar's appeal. Producer price index figures for March are scheduled for release on Tuesday.
Brief optimism surrounding potential ceasefire talks last week provided temporary relief to Asian currencies, but that sentiment has since reversed. President Donald Trump ordered a blockade of the Strait of Hormuz following the weekend's failed negotiations, though U.S. Central Command later clarified the measure would primarily target Iranian vessels and infrastructure. As of Monday, a fragile ceasefire remained in place with no reported military strikes.
Investor focus this week shifts to key economic releases from both the United States and China, including Chinese trade figures and first-quarter GDP data, Indian inflation numbers, Singaporean GDP, South Korean trade statistics, and Australian employment data. Markets will closely monitor these reports for signs of economic disruption tied to the ongoing conflict.
