Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
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 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
European Stocks Slip as Middle East Tensions and Hormuz Threat Rattle Markets 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
South Korea Central Bank Set to Raise Interest Rates as Inflation Stays Elevated 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
Singapore GDP Grows 5.7% in Q2 2026 as AI-Driven Manufacturing Boosts Economy 
South Korea’s KOSPI Triggers Trading Curb as AI Chip Stock Selloff Deepens 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
Dollar Eases as Middle East Conflict, Fed Outlook and Japan Pension Policy Drive FX Markets 
Gold Prices Fall as US-Iran Conflict, Rising Oil Prices Fuel Fed Rate Concerns 
Dollar Rises as Middle East Conflict Fuels Inflation and Rate Hike Fears 
Most Asian currencies gained ground on Wednesday as the US dollar retreated to a four-week low amid improving global risk appetite, fueled largely by a surprise ceasefire agreement between US President Donald Trump and Iran. The development eased fears of a prolonged Middle East conflict and sent oil prices tumbling below $100 per barrel.
The US Dollar Index shed nearly 1%, with futures contracts also trading around 0.9% lower in early Asian hours. The retreat in the greenback provided broad support across regional currencies, with several posting notable gains.
Trump announced late Tuesday that both sides had agreed to a two-week "double-sided" ceasefire, struck just before a self-imposed deadline for potential large-scale US military action. The deal, brokered through Pakistan's diplomatic efforts, hinges on Iran guaranteeing the full and immediate reopening of the Strait of Hormuz — a critical global shipping route. Analysts at MUFG noted that de-escalation in the region is particularly favorable for Asia, which has been disproportionately affected by the threat of a Strait closure.
The Chinese yuan surged to its strongest level against the dollar in three years, with the USD/CNY pair falling to 6.82. The Japanese yen and South Korean won also strengthened, while the Singapore dollar posted moderate gains.
In monetary policy news, the Reserve Bank of New Zealand held its benchmark interest rate steady at 2.25%, in line with market forecasts. The central bank cautioned that elevated oil prices could temporarily drive inflation higher even as economic momentum slows. The New Zealand dollar jumped 1.7% following the announcement. The Australian dollar climbed 1.2%.
Meanwhile, the Indian rupee edged higher ahead of the Reserve Bank of India's policy decision, where the repo rate is broadly expected to remain at 5.25%. Traders are also watching Friday's US consumer price index release for fresh signals on the Federal Reserve's monetary policy direction.
