Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Dollar Eases as Middle East Conflict, Fed Outlook and Japan Pension Policy Drive FX Markets 
Asian Stocks Slide as Oil Surge, U.S.-Iran Tensions and Fed Rate Bets Weigh on Markets 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
Dollar Rises as Middle East Conflict Fuels Inflation and Rate Hike Fears 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Gold Prices Fall as US-Iran Conflict, Rising Oil Prices Fuel Fed Rate Concerns 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
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 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Asian currencies weakened further on Tuesday, led by the Indian rupee, which plunged to a record low as rising Middle East tensions pushed crude oil prices higher and strengthened demand for the U.S. dollar. Investors also remained cautious ahead of key U.S. inflation data and an anticipated meeting between U.S. President Donald Trump and Chinese President Xi Jinping later this week.
The Indian rupee suffered heavy losses, with the USD/INR pair surging to an all-time high of 95.625 before trimming gains after suspected intervention by the Reserve Bank of India. The sharp decline reflects growing concerns over India’s rising import costs due to elevated oil prices. Prime Minister Narendra Modi urged businesses and consumers to reduce fuel usage, avoid unnecessary travel, and limit imports to protect the country’s foreign exchange reserves.
The broader Asian forex market also remained under pressure as fears surrounding the Iran conflict continued to impact investor sentiment. Oil-importing economies across the region faced mounting pressure as crude prices stayed elevated amid uncertainty over the stability of the Middle East.
U.S. President Donald Trump stated that the ceasefire discussions with Iran were “on massive life support,” highlighting significant disagreements between both sides despite ongoing peace efforts. Concerns intensified after reports suggested Trump is considering renewed military operations against Iran if negotiations fail. Investors fear any escalation could threaten shipping routes through the Strait of Hormuz, a key channel for global oil supplies.
Elsewhere in Asia, the South Korean won weakened sharply, with USD/KRW climbing 0.7% after nearly a 1% jump in the previous session. The Japanese yen and Singapore dollar also declined against the U.S. dollar, while the Australian dollar slipped 0.3%. China’s yuan remained relatively stable.
Markets are now closely watching the upcoming U.S. Consumer Price Index report for signals on the Federal Reserve’s interest rate outlook. Traders are also focused on the Trump-Xi meeting, which is expected to cover trade tensions, energy security, and the Iran conflict. Analysts believe any improvement in U.S.-China relations could help stabilize Asian currencies and ease market concerns.
