South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
European Stocks Slip as Middle East Tensions and Hormuz Threat Rattle Markets 
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 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
Dollar Eases as Middle East Conflict, Fed Outlook and Japan Pension Policy Drive FX Markets 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Asian currencies edged lower on Friday as the U.S. dollar steadied, with traders closely monitoring upcoming U.S. consumer price index (CPI) data for signals on the Federal Reserve’s interest rate outlook. Despite the daily pullback, most regional currencies remained on track for weekly gains, while the dollar faced overall weekly losses amid growing uncertainty surrounding U.S. monetary policy.
The Japanese yen emerged as the top-performing Asian currency this week, supported by renewed speculation of government intervention in the foreign exchange market. Although the USD/JPY pair rose 0.2% on Friday, it was down roughly 2.6% for the week, marking its strongest weekly performance since November 2024. Hawkish remarks from Japanese officials boosted the yen, helping investors overlook fiscal concerns tied to Prime Minister Sanae Takaichi’s spending policies.
The Australian dollar also posted strong gains, with AUD/USD climbing 1% and reaching a three-year high after firm signals from the Reserve Bank of Australia suggested a tighter monetary policy stance. Meanwhile, the South Korean won strengthened, with USD/KRW falling 1.4% this week, driven by increased foreign inflows into domestic equity markets, particularly chip stocks benefiting from the artificial intelligence boom.
China’s yuan saw modest movement, as USD/CNY edged higher on Friday but remained down 0.4% for the week. Support came from consistent midpoint fixes by the People’s Bank of China, keeping the currency near a three-year high. The Indian rupee traded flat for the week, while the Singapore dollar gained ground, with USD/SGD down 0.6%.
The U.S. dollar index ticked up slightly in Asian trading ahead of January inflation data. Although headline and core CPI are expected to show mild easing, investors remain cautious after stronger-than-expected nonfarm payrolls data earlier this week. The dollar remains pressured, particularly following Kevin Warsh’s nomination as the next Federal Reserve Chair, adding further uncertainty to the U.S. interest rate trajectory.
