ECB Signals Possible Rate Hike as Middle East Tensions Push Euro Zone Inflation Higher 
Oil Tankers Exit Strait of Hormuz as Trump Signals Possible Iran Deal 
Asian Currencies Stay Rangebound as Dollar Holds Near Six-Week High Amid Iran War Concerns 
Dollar Slips as Risk Appetite Grows Amid Nvidia Rally and Iran Peace Hopes 
Australian Consumer Sentiment Improves Slightly as Fuel Prices Ease 
Asian Stocks Rally as Nvidia Earnings Boost Tech Shares, Samsung Jumps on Wage Deal 
China Delays Pentagon Official’s Beijing Visit Amid Taiwan Arms Deal Tensions 
China to Buy 200 Boeing Jets, Push for Extended U.S. Trade Deal 
China Keeps Loan Prime Rates Steady for 12th Month as PBOC Signals Cautious Policy Approach 
Oil Prices Climb as Trump Warns of Possible U.S. Strike on Iran 
Japan Manufacturing Growth Slows in May as Services Sector Stagnates Amid Rising Middle East Supply Costs 
US Stock Futures Steady as Nvidia Earnings and Iran Tensions Keep Investors on Edge 
Japan Posts Strong April Trade Surplus as Exports Surge Amid Robust U.S. and China Demand 
Gold Prices Steady as Iran War Fuels Inflation and Rate Concerns 
Fed’s Anna Paulson Signals Rates Could Stay Higher Longer Amid Inflation Risks 
Asian currencies gained ground on Monday while the US dollar slipped as investors turned cautious ahead of a looming deadline that could trigger a partial U.S. government shutdown. Market focus also remained on key monetary policy decisions this week from the Reserve Bank of Australia (RBA) and the Reserve Bank of India (RBI).
The US Dollar Index, which tracks the greenback against a basket of major peers, fell 0.2% in early Asian trade. Futures linked to the index also traded lower by the same margin at 04:17 GMT. Investors are closely watching whether Congress can pass a funding bill before the fiscal year ends, with failure likely resulting in a shutdown beginning Wednesday. U.S. President Donald Trump is set to meet lawmakers later Monday in a bid to avert the crisis.
A shutdown would immediately impact government operations and financial markets, particularly delaying crucial economic data such as the September nonfarm payrolls report, due Friday. Market participants fear prolonged disruption could weigh on investor sentiment and increase volatility.
Asian foreign exchange markets strengthened as traders speculated that U.S. political uncertainty may drive near-term outflows from U.S. assets. The Japanese yen rose 0.4% against the dollar, while the Singapore dollar gained 0.1%. The South Korean won advanced 0.4%, and the Indonesian rupiah firmed 0.3%. Both the onshore and offshore Chinese yuan also edged higher, with USD/CNY down 0.2% and USD/CNH falling 0.3%.
Meanwhile, the Australian dollar climbed 0.3% ahead of Tuesday’s RBA meeting, where rates are widely expected to remain unchanged at 3.6%. The Indian rupee traded flat near record lows, with investors awaiting the RBI’s decision later this week. Analysts largely expect no change to the policy rate, currently at 5.50%, though some see room for a surprise cut.
With U.S. political risks and central bank outcomes in focus, global markets are bracing for heightened volatility in the week ahead.
