Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
Asian Currencies Weaken as Stronger Dollar Weighs, Yen Supported by GPIF Repatriation Hopes 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Singapore GDP Grows 5.7% in Q2 2026 as AI-Driven Manufacturing Boosts Economy 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
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 Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
Most Asian currencies weakened on Monday as rising geopolitical tensions in the Middle East reduced investor appetite for riskier assets. Concerns grew after U.S.-Iran peace negotiations appeared to stall, pushing the U.S. dollar and oil prices higher across global markets.
The U.S. Dollar Index gained momentum following stronger-than-expected U.S. payroll data released last week, which lowered expectations for immediate Federal Reserve interest rate cuts. The renewed strength of the dollar placed pressure on several Asian currencies, particularly those tied to emerging markets.
Market sentiment worsened after U.S. President Donald Trump reportedly described Iran’s response to Washington’s peace proposal as “totally unacceptable.” The comments dampened hopes for a quick resolution to tensions in the Gulf region, a key area for global energy supplies.
Oil prices surged more than 4% amid fears of disruptions near the Strait of Hormuz, one of the world’s most important oil shipping routes. Traders remain concerned that prolonged instability in the region could tighten global energy supply and fuel inflationary pressures worldwide.
Among Asian currencies, the South Korean won posted the biggest decline, with the USD/KRW pair rising 0.9%. The Indian rupee also weakened, pushing USD/INR up 0.4%, while the Singapore dollar slipped 0.3% against the greenback. The Australian dollar fell 0.3% as investors moved toward safer assets.
The Japanese yen also lost ground, although expectations of possible intervention by Japanese authorities helped limit losses. Analysts noted that Tokyo continues to closely monitor currency volatility after recent sharp yen movements sparked speculation of large-scale market intervention.
Meanwhile, China’s yuan found some support after inflation data exceeded forecasts. China’s consumer price index rose 1.2% year-on-year, while producer prices climbed 2.8%, marking the fastest increase in nearly four years. Investors are also watching for a highly anticipated meeting between Trump and Chinese President Xi Jinping later this week, where trade, Taiwan, and the Iran conflict are expected to dominate discussions.
