Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
South Korea Central Bank Set to Raise Interest Rates as Inflation Stays Elevated 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Dollar Eases as Middle East Conflict, Fed Outlook and Japan Pension Policy Drive FX Markets 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Iraq PM Visits Washington as U.S. Oil, Gas Deals Take Center Stage 
Dollar Rises as Middle East Conflict Fuels Inflation and Rate Hike Fears 
Asia Stocks Slip as Iran-Hormuz Tensions Lift Oil Prices, Dollar and Bond Yields 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
South Korea’s KOSPI Triggers Trading Curb as AI Chip Stock Selloff Deepens 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
Asian currencies traded mixed on Friday while the U.S. dollar weakened slightly, as investors assessed growing optimism over a potential U.S.-Iran peace agreement and the latest signals on Federal Reserve interest rate policy.
The U.S. Dollar Index (DXY) fell 0.1% during Asian trading hours after dropping to a one-week low in the previous session. U.S. Dollar Index futures also edged down 0.1%, reflecting cautious market sentiment.
Investor confidence improved after U.S. President Donald Trump stated that a peace agreement with Iran could be reached as early as this weekend. The comments boosted risk appetite across global financial markets, although Iranian officials indicated that a final decision has not yet been made.
Expectations of easing geopolitical tensions pushed oil prices to their lowest level in nearly two months, raising hopes for more stable energy supplies and reduced pressure on global markets.
Among Asian currencies, the Indian rupee emerged as the strongest performer. The USD/INR pair fell 0.7%, supported by improving investor sentiment and a softer U.S. dollar. The Chinese yuan also strengthened, with USD/CNY declining 0.2%, while the Singapore dollar remained largely unchanged against the greenback.
The Australian dollar slipped 0.1% against the U.S. dollar after posting strong gains in the previous session. Meanwhile, the Japanese yen weakened slightly, with USD/JPY rising 0.2% to 160.25. The pair remains above the 160 level, a range that previously triggered currency intervention by Japanese authorities.
Market participants are also focused on next week's Bank of Japan meeting. Analysts widely expect the central bank to raise interest rates by 25 basis points to 1%, marking the highest Japanese interest rate level in decades.
Attention is also turning to U.S. inflation data and its impact on Federal Reserve policy. Recent producer price data showed stronger-than-expected growth in May, largely due to higher energy costs. However, core inflation remained relatively moderate, easing concerns about immediate monetary tightening.
According to CME FedWatch data, markets are currently pricing in roughly a 60% probability of a Federal Reserve rate hike by December, keeping traders closely focused on upcoming economic indicators and central bank guidance.
