US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Port of Los Angeles Posts Record June Cargo Volume as Importers Rush Ahead of U.S. Tariffs 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
US Stock Futures Hold Steady as Soft Inflation Data Eases Fed Rate Hike Fears 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
Asian currencies traded in a narrow range on Friday as the U.S. dollar rebounded modestly from a near four-year low, following comments from U.S. President Donald Trump that he would announce his nominee for the next Federal Reserve Chairman later in the day. Despite the dollar’s late recovery, most Asian currencies were on track to post strong gains for January, reflecting a broad shift by traders away from the greenback amid rising global uncertainty.
The U.S. dollar has been under sustained pressure this month as concerns over Trump’s economic policies, fiscal health, and escalating geopolitical tensions weighed heavily on sentiment. Investors increasingly rotated into gold, physical assets, and regional currencies, driving the dollar index to its worst monthly performance since August 2025, with losses of around 1.8%.
Among Asian currencies, the Australian dollar emerged as the strongest performer, with the AUD/USD pair rising nearly 5% in January. Although the pair slipped about 0.6% on Friday, it remained close to a two-year high. The Australian dollar was supported by expectations that the Reserve Bank of Australia will raise interest rates by at least 25 basis points at its upcoming policy meeting, following a sharp uptick in fourth-quarter inflation data. Signs of resilience in the Australian economy have further strengthened the case for tighter monetary policy.
The Japanese yen also posted solid gains this month as speculation grew over potential government intervention to stabilize currency markets. The USD/JPY pair declined about 1.8% in January, although it rebounded slightly on Friday after Tokyo inflation data showed a sharp slowdown, potentially complicating the Bank of Japan’s rate hike outlook.
The Chinese yuan benefited from sustained dollar weakness, with USD/CNY touching its strongest level in nearly three years, aided by firm midpoint fixings from the People’s Bank of China. In contrast, the Indian rupee lagged behind its regional peers, hitting record lows and falling more than 2% this month due to concerns over slowing economic growth and stalled U.S.-India trade talks.
Elsewhere, the South Korean won and Singapore dollar both posted monthly gains, reflecting broader strength across Asian currencies despite short-term volatility in global markets.
