Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
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 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Asian Currencies Hold Steady as Middle East Tensions Offset Weaker US Dollar 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
Gold Prices Slip as Oil Rally Fuels Inflation Fears, Strengthens Dollar 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Asian Stocks Slide as Oil Surge, U.S.-Iran Tensions and Fed Rate Bets Weigh on Markets 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
Asian currencies traded in a narrow range on Tuesday as renewed U.S.-China trade tensions kept markets on edge. The dollar remained steady ahead of Federal Reserve Chair Jerome Powell’s upcoming address, while regional currencies struggled to recover from steep losses in the previous session.
Market sentiment soured after U.S. President Donald Trump threatened to impose 100% tariffs on Chinese imports, prompting a strong response from Beijing. China’s Ministry of Commerce warned that it would “fight to the end” in any trade conflict with the United States. Despite diplomatic efforts to ease concerns, traders remained cautious amid fears of escalating trade hostilities between the two largest economies.
The Chinese yuan weakened slightly, with the USD/CNY pair rising 0.1%, reflecting investor anxiety. Trade data released Monday showed that China’s exports remained resilient despite 50% tariffs, as exporters diverted shipments to other Asian and European markets.
Elsewhere, the Japanese yen slipped slightly against the dollar (USD/JPY), weighed down by expectations of increased fiscal spending under incoming Prime Minister Sane Takaichi. However, her leadership faced uncertainty after a key coalition partner withdrew support. The South Korean won (USD/KRW) was largely unchanged, while the Australian dollar (AUD/USD) fell 0.3%. The Indian rupee (USD/INR) remained above 88, pressured by weaker consumer inflation data that fueled speculation of further rate cuts by the Reserve Bank of India.
Meanwhile, the U.S. dollar index eased 0.1% as traders awaited Powell’s remarks at the National Association for Business Economics meeting. The ongoing U.S. government shutdown has delayed key economic data, deepening uncertainty ahead of the Fed’s late-October meeting, where another 25 basis-point rate cut is expected.
The Singapore dollar (USD/SGD) held steady after stronger-than-expected third-quarter GDP growth. The Monetary Authority of Singapore maintained its policy stance, citing stable growth and limited fallout from trade tariffs, though economic momentum cooled compared to the previous quarter.
