Japan Signals Surprise Yen Intervention Strategy as BOJ Hawkish Stance Puts FX Traders on Alert 
Trump Administration Declines USMCA Renewal, Opens Talks on New Trade Changes 
Oil Prices Slip as Oversupply Concerns and U.S.-Iran Talks Shape Market Outlook 
China Services PMI Beats Forecasts as Strong Demand Supports June Growth 
Goldman Sachs Raises USD/JPY Forecast, Sees Yen Weakness Persist Through 2027 
Oil Prices Steady as U.S.-Iran Talks Ease Supply Fears Ahead of Holiday Weekend 
US Resumes Dollar Shipments to Iraq After Months-Long Suspension 
Oil Prices Steady as U.S.-Iran Peace Talks Ease Strait of Hormuz Supply Fears 
Brazil to Phase Out Gasoline Subsidy First as Diesel Support Stays Longer 
Japan Signals Readiness to Act on Yen as Intervention Speculation Grows 
U.S. Dollar Drops as Weak Jobs Data Boosts Fed Pause Bets, Yen Jumps on Intervention Talk 
Moody’s Says Peru’s President-Elect Keiko Fujimori Could Boost Investor Confidence 
Goldman Sachs Says China Competition Weighs More on EU Growth Than Trade Deficit 
Asian Stocks Slide as Chip Shares Tumble Ahead of Key U.S. Jobs Report 
US Stock Futures Hold Steady Ahead of June Jobs Report as Fed Rate Outlook Remains in Focus 
Gold Price Surges Above $4,120 as Weak US Jobs Data Lowers Fed Rate Hike Expectations 
JPMorgan Cuts Gold Price Forecast, Sees Bullion Reaching $4,500 by End of 2026 
Asian currencies weakened sharply in Monday’s trading session after the United States and Israel launched major military strikes on Iran, intensifying geopolitical tensions and sparking a global risk-off wave. Investors shifted toward safe-haven assets, boosting the U.S. dollar and driving volatility across Asian forex markets.
The South Korean won led regional losses, with the USD/KRW pair jumping 1% as traders reacted to South Korea’s heavy dependence on imported energy and its exposure to rising oil prices. Analysts warned that sustained increases in crude prices could further pressure currencies of oil-importing nations. MUFG analyst Michael Wan noted that the Korean won (KRW), Indian rupee (INR), and Philippine peso (PHP) remain particularly vulnerable due to their oil import linkages and higher beta sensitivity to global risk sentiment.
The US Dollar Index gained 0.2% in Asian trade, extending earlier advances fueled by haven demand. U.S. Dollar Index futures also rose 0.2%, reflecting ongoing investor caution. Oil prices surged to multi-month highs amid fears of supply disruptions in the Gulf region and potential threats to shipping routes through the Strait of Hormuz, a key corridor for global crude flows.
The Indian rupee weakened, with USD/INR rising 0.3%, while the Singapore dollar saw USD/SGD climb 0.2%. The Chinese yuan edged lower, as both USD/CNY and USD/CNH ticked higher, hovering near 34-month lows reached last week. Meanwhile, the Japanese yen showed relative resilience, with USD/JPY up 0.2%, supported by safe-haven flows.
In contrast, commodity-linked currencies such as the Australian dollar and New Zealand dollar recovered most of their earlier losses. AUD/USD traded flat after dropping as much as 1.2%, while NZD/USD rebounded from nearly a 1% decline. Australia’s status as a major commodity exporter helped cushion the impact of rising crude prices compared to other Asian economies.
Heightened geopolitical risks, surging oil prices, and stronger U.S. dollar momentum are likely to keep Asian currency markets volatile in the near term.
