Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Asian Currencies Weaken as Stronger Dollar Weighs, Yen Supported by GPIF Repatriation Hopes 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
Dollar Eases as Middle East Conflict, Fed Outlook and Japan Pension Policy Drive FX Markets 
Asia Stocks Slip as Iran-Hormuz Tensions Lift Oil Prices, Dollar and Bond Yields 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
European Stocks Slip as Middle East Tensions and Hormuz Threat Rattle Markets 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Dollar Rises as Middle East Conflict Fuels Inflation and Rate Hike Fears 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
Asian currencies traded within a narrow range on Tuesday as geopolitical uncertainty surrounding potential U.S.-Iran peace talks kept investors cautious. With a temporary ceasefire set to expire later this week, traders largely remained on the sidelines, limiting volatility across regional foreign exchange markets.
The U.S. dollar showed resilience during Asian trading hours, with the dollar index hovering near its lowest levels since early March. Market attention shifted toward a key Senate confirmation hearing for Federal Reserve Chair nominee Kevin Warsh. His stance on monetary policy and central bank independence is under close scrutiny, especially given ongoing political pressure from President Donald Trump for more aggressive interest rate cuts.
Warsh has historically supported lower interest rates but has also advocated for reducing the Federal Reserve’s balance sheet, positioning him as less dovish than some investors had anticipated. His nomination has sparked debate in Washington, with some lawmakers threatening to block the confirmation unless concerns over a criminal probe into current Fed Chair Jerome Powell are addressed. Powell’s term is scheduled to end on May 15.
In Asia, the Japanese yen weakened slightly, with USD/JPY ticking higher after reports suggested the Bank of Japan may delay interest rate hikes amid concerns over prolonged Middle East tensions and rising import costs. While Japan’s inflation has eased recently, higher energy prices could reverse this trend, complicating policy decisions.
Other Asian currencies, including the Chinese yuan and Singapore dollar, remained largely unchanged. The Australian dollar and Indian rupee edged lower due to subdued risk appetite, while the New Zealand dollar outperformed, supported by stronger-than-expected inflation data.
Oil prices, which had surged earlier, eased slightly, offering some relief to regional markets. However, uncertainty around Iran’s diplomatic stance and upcoming negotiations continues to influence investor sentiment across global FX markets.
