South Korea Central Bank Set to Raise Interest Rates as Inflation Stays Elevated 
Singapore GDP Grows 5.7% in Q2 2026 as AI-Driven Manufacturing Boosts Economy 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
Dollar Eases as Middle East Conflict, Fed Outlook and Japan Pension Policy Drive FX Markets 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
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 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Asian Stocks Slide as Oil Surge, U.S.-Iran Tensions and Fed Rate Bets Weigh on Markets 
European Stocks Slip as Middle East Tensions and Hormuz Threat Rattle Markets 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
Asian currencies were largely unchanged on Wednesday as subdued Lunar New Year trading kept market activity light across the region. With major financial centers such as China and Hong Kong closed for the holiday, foreign exchange markets saw limited volatility despite ongoing U.S. dollar consolidation ahead of key economic data releases.
The U.S. Dollar Index rose 0.1% after modest overnight gains, while U.S. Dollar Index futures also edged 0.1% higher in early GMT trading. Investors remained cautious as they awaited the Federal Reserve’s January meeting minutes and the upcoming U.S. personal consumption expenditures (PCE) price index report, a key inflation indicator that could shape expectations for future interest rate policy.
The New Zealand dollar was the biggest mover in the region. The NZD/USD pair dropped nearly 1% after the Reserve Bank of New Zealand (RBNZ) kept its official cash rate unchanged at 2.25%. The central bank reiterated its accommodative monetary policy stance, signaling that interest rates would remain supportive as inflation gradually returns to its 2% midpoint target. The RBNZ noted that spare economic capacity and moderate wage growth are likely to keep price pressures contained over the next year. Following the announcement, markets scaled back expectations for near-term rate hikes, pushing tightening bets toward late 2026 and weighing on the kiwi dollar.
In Japan, fresh trade data showed exports surged 16.8% year-on-year in January, while imports declined, resulting in a narrower-than-expected trade deficit of 1.15 trillion yen. Despite the strong export performance, the USD/JPY pair edged 0.1% higher.
Elsewhere in Asia, currency movements were muted. The South Korean won traded flat against the dollar, the Singapore dollar gained 0.1%, and the offshore Chinese yuan remained steady. The Indian rupee posted marginal gains, while the Australian dollar slipped 0.2% against the greenback as traders positioned ahead of critical U.S. economic signals.
