Dollar Eases as Middle East Conflict, Fed Outlook and Japan Pension Policy Drive FX Markets 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Iraq PM Visits Washington as U.S. Oil, Gas Deals Take Center Stage 
Asian Currencies Weaken as Stronger Dollar Weighs, Yen Supported by GPIF Repatriation Hopes 
European Stocks Slip as Middle East Tensions and Hormuz Threat Rattle Markets 
Dollar Rises as Middle East Conflict Fuels Inflation and Rate Hike Fears 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Asian currencies traded within a narrow range on Wednesday as the U.S. dollar remained close to a six-week high, supported by growing expectations of another Federal Reserve rate hike and ongoing uncertainty surrounding the Iran conflict. Investors continued to monitor geopolitical tensions and rising oil prices, both of which have fueled concerns over global inflation and interest rate policy.
The U.S. dollar index and dollar futures edged higher during Asian trading hours, maintaining levels not seen since early April. Market sentiment was boosted after Philadelphia Federal Reserve President Anna Paulson stated that financial markets were justified in speculating about possible future interest rate hikes, even as current monetary policy remains restrictive. Rising energy costs linked to the Iran war have intensified inflation concerns, strengthening the dollar’s appeal as a safe-haven currency.
Oil prices remained elevated after the conflict disrupted nearly 20% of global oil supply routes, adding pressure on inflation worldwide. Although Washington indicated that negotiations with Iran were progressing positively, crude prices retained most of their recent gains, keeping markets cautious.
Among Asian currencies, the Indian rupee emerged as the weakest performer. The USD/INR pair climbed to a record high of 96.784, driven by India’s heavy dependence on imported crude oil and concerns over the Reserve Bank of India’s ability to stabilize the currency amid soaring energy prices.
The Japanese yen showed modest strength, with USD/JPY slipping below the 159 level as investors increased bets on a potential Bank of Japan rate hike next month. Expectations of tighter monetary policy in Japan offered limited support to the otherwise weak yen.
Elsewhere, the Australian dollar weakened slightly, while the Singapore dollar and South Korean won remained largely unchanged. The Chinese yuan posted minor gains, and the Taiwan dollar traded flat despite renewed tensions between China and Taiwan following comments from U.S. President Donald Trump regarding arms sales and Taiwan’s political status.
