Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
South Korea Central Bank Set to Raise Interest Rates as Inflation Stays Elevated 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Iraq PM Visits Washington as U.S. Oil, Gas Deals Take Center Stage 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Dollar Eases as Middle East Conflict, Fed Outlook and Japan Pension Policy Drive FX Markets 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Dollar Rises as Middle East Conflict Fuels Inflation and Rate Hike Fears 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Asian currencies traded mostly flat on Wednesday after posting strong gains in the previous session, as higher-than-expected U.S. inflation data strengthened the U.S. dollar and pushed Treasury yields higher. Investors also reduced expectations for Federal Reserve interest rate cuts, increasing pressure on regional currencies.
The U.S. Dollar Index remained near a one-week high during Asian trading hours after climbing 0.4% on Tuesday. Market sentiment shifted after fresh data showed U.S. consumer prices rose 3.8% year-over-year in April, marking the fastest pace of inflation since May 2023. The reading came in above analyst forecasts, reinforcing concerns that the Federal Reserve could maintain elevated interest rates for a longer period.
Following the inflation report, traders largely ruled out the possibility of a Fed rate cut in 2026, while expectations for another rate hike increased slightly. Rising Treasury yields also supported the dollar’s strength against major Asian currencies.
The Japanese yen weakened slightly, with the USD/JPY pair rising 0.1% after gaining 0.3% in the previous session. The South Korean won also stabilized after a sharp rally, while the Indian rupee hovered near record lows against the dollar after USD/INR touched 95.7375 in the prior session.
Meanwhile, the Singapore dollar and Australian dollar traded in narrow ranges as investors remained cautious ahead of key geopolitical developments.
The Chinese yuan stayed near a three-year low against the dollar, although it continued to outperform several regional peers. Investors are closely monitoring talks between former U.S. President Donald Trump and Chinese President Xi Jinping in Beijing from May 13 to May 15. Discussions are expected to focus on trade relations, tariffs, artificial intelligence, rare earth exports, and the ongoing Iran conflict.
Global market sentiment also remained fragile due to escalating Middle East tensions. Concerns over disruptions in oil shipments through the Strait of Hormuz kept crude oil prices above $100 per barrel, adding to inflation worries worldwide and further supporting the U.S. dollar.
