Port of Los Angeles Posts Record June Cargo Volume as Importers Rush Ahead of U.S. Tariffs 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
Asian Stocks Slide as Oil Surge, U.S.-Iran Tensions and Fed Rate Bets Weigh on Markets 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
South Korea Central Bank Set to Raise Interest Rates as Inflation Stays Elevated 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
Singapore GDP Grows 5.7% in Q2 2026 as AI-Driven Manufacturing Boosts Economy 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
US Stock Futures Hold Steady as Soft Inflation Data Eases Fed Rate Hike Fears 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
Asian currencies weakened on Thursday as a stronger US dollar and hawkish signals from Federal Reserve officials weighed on regional foreign exchange markets. The South Korean won and Indian rupee led losses, while the Australian dollar outperformed after resilient domestic employment data supported expectations of further rate hikes by the Reserve Bank of Australia (RBA).
The US Dollar Index rose 0.1% after surging roughly 0.6% in the previous session, reflecting renewed demand for the greenback. US Dollar Index futures also climbed 0.1% in early Asian trading. The dollar’s strength followed the release of Federal Reserve meeting minutes, which indicated policymakers remain cautious about inflation and are prepared to keep interest rates higher for longer. Some officials even signaled openness to additional rate hikes if price pressures persist.
The hawkish tone reinforced expectations that US monetary policy will remain restrictive in the near term, placing pressure on higher-beta Asian currencies. Investors are now closely watching the upcoming US Personal Consumption Expenditures (PCE) price index data, the Fed’s preferred inflation gauge, for further clues on the future interest rate path.
In currency markets, the USD/KRW pair jumped 0.6%, highlighting weakness in the South Korean won. The USD/INR gained 0.4%, while the offshore Chinese yuan saw USD/CNH edge up 0.2%. The Singapore dollar also slipped, with USD/SGD ticking 0.1% higher. The Japanese yen weakened as USD/JPY rose 0.2%. Trading volumes remained subdued across parts of Asia due to Lunar New Year holidays, contributing to thinner liquidity conditions.
In contrast, the Australian dollar gained ground, with AUD/USD rising 0.2% after data showed Australia’s unemployment rate held steady at 4.1% in January. Although employment growth slowed, the stable jobless rate signaled a tight labor market. This strengthened expectations that the RBA will maintain its hawkish stance following its recent rate increase, offering relative support to the Aussie dollar amid broader regional currency weakness.
