US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
European Stocks Slip as Middle East Tensions and Hormuz Threat Rattle Markets 
South Korea Central Bank Set to Raise Interest Rates as Inflation Stays Elevated 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
Asian Stocks Slide as Oil Surge, U.S.-Iran Tensions and Fed Rate Bets Weigh on Markets 
Asian Currencies Weaken as Stronger Dollar Weighs, Yen Supported by GPIF Repatriation Hopes 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
South Korea’s KOSPI Triggers Trading Curb as AI Chip Stock Selloff Deepens 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
Asian currencies traded cautiously on Thursday as global investors closely monitored the high-profile meeting between U.S. President Donald Trump and Chinese President Xi Jinping. At the same time, persistent inflation concerns tied to rising oil prices continued to strengthen the U.S. dollar and pressure emerging Asian currencies.
The U.S. Dollar Index slipped slightly by 0.1% after reaching a two-week high in the previous trading session. The greenback remained supported after stronger-than-expected U.S. inflation data reinforced expectations that the Federal Reserve may keep interest rates higher for a longer period.
Market attention remained focused on the Trump-Xi summit, where both leaders aimed to stabilize trade relations amid ongoing tensions involving tariffs, artificial intelligence, semiconductor exports, Taiwan, and China’s ties with Iran. Chinese President Xi Jinping said recent trade discussions between the two countries had produced “positive outcomes” and emphasized that continued cooperation was important for global economic stability.
The Chinese yuan strengthened modestly, with the USD/CNY pair falling 0.1% to its lowest level since February 2023. Meanwhile, the Japanese yen remained largely unchanged against the dollar, while South Korea’s won weakened slightly. The Singapore dollar and Australian dollar also traded in narrow ranges as investors awaited more signals from global policymakers.
The Indian rupee continued to face heavy pressure, with the USD/INR pair climbing 0.2% to a record high near 95.85. Analysts attributed the rupee’s weakness to surging crude oil prices, persistent foreign capital outflows, and concerns about India’s widening trade deficit.
Oil prices above $100 per barrel, driven by tensions surrounding Iran, have intensified fears of imported inflation across Asia. Rising energy and transportation costs also contributed to higher U.S. producer and consumer inflation figures, further supporting the dollar and weakening regional currencies.
