South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
Gold Prices Slip as Oil Rally Fuels Inflation Fears, Strengthens Dollar 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Port of Los Angeles Posts Record June Cargo Volume as Importers Rush Ahead of U.S. Tariffs 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
US Stock Futures Hold Steady as Soft Inflation Data Eases Fed Rate Hike Fears 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
Most Asian currencies edged lower on Monday as investors assessed mixed signals on the Federal Reserve’s next policy move. The US Dollar Index held steady after a strong performance last week, keeping pressure on regional currencies. According to the CME FedWatch Tool, expectations for a 25-basis-point Fed rate cut in December rose sharply to about 69%, up from 44% a week earlier. This shift came after New York Fed President John Williams hinted that policy adjustments could be possible in the near term. Still, several Fed officials emphasized that inflation and labor market strength remain concerns, leaving December’s outcome uncertain.
Analysts at ING noted that the minutes from the October FOMC meeting showed many officials leaning against a December rate cut, suggesting that without key upcoming economic data, opinions are unlikely to shift significantly.
Across Asia, the Chinese yuan (USD/CNH) inched 0.1% higher, while the Singapore dollar (USD/SGD) rose 0.2%. The South Korean won (USD/KRW) dropped 0.5%, marking the biggest decline among regional currencies. The Australian dollar (AUD/USD) remained largely stable.
The Japanese yen (USD/JPY) continued to face downward pressure after touching multi-month lows last week. Expectations that the Bank of Japan may maintain or even ease monetary policy—combined with expansionary fiscal measures under new Prime Minister Sanae Takaichi—added to the yen’s weakness. Tokyo officials reiterated that currency intervention remains possible if volatility becomes excessive, offering limited support.
Meanwhile, the Indian rupee (USD/INR) strengthened 0.5% after sinking to a record low of 89.72 on Friday. Reports indicated that the Reserve Bank of India stepped in to stabilize the currency following a sharp sell-off triggered when the pair broke past the 88.80 level, which RBI had previously defended.
This latest currency movement reflects ongoing uncertainty in global monetary policy and shifting investor sentiment across Asian markets.
