China Inflation Accelerates in August as CPI, PPI Rise 
Brent Oil Tops $100 as Middle East Conflict Threatens Supply 
Iraq Seeks 6 Million Bpd OPEC+ Oil Quota 
US Stock Futures Mixed as Fed Rate Hike Bets Rise 
Japan, U.S. Stay Aligned on Yen as Currency Surges 
Gold Prices Rebound as Dollar Weakens, Fed Decision Looms 
Hungary Industrial Output Beats Forecasts With 4.7% July Growth 
Asian Stocks Mixed as Korean Chipmakers Rally 
US Bans Canadian Alcohol, Motorcycles as Trade War Escalates 
Iran Plans New Gulf Restricted Zone as Hormuz Tensions Push Oil Higher 
Japanese Yen Nears Seven-Month High as Oil Approaches $100 
Gold Prices Rise as Yen Rally Weakens Dollar 
China to Inject $45 Billion Into State Financial Institutions 
South Korea GDP Surges on Chip and AI Boom 
UK House Prices Fall for First Time Since 2023 
European Stocks Flat as Iran Tensions, ECB Rate Hike Loom 
China Boosts Gold Reserves by 650,000 Ounces as Prices Rally 
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Asian currencies rallied on Monday, led by the Japanese yen and Australian dollar, after the U.S. dollar tumbled to a three-year low. The drop followed President Donald Trump’s proposed overhaul of the Federal Reserve, sparking investor uncertainty.
The U.S. Dollar Index plunged 1.2% to 98.18 in Asian trading, its weakest level since March 2022. The decline was driven by comments from White House economic advisor Kevin Hassett, who confirmed that Trump is reviewing whether he can dismiss Fed Chair Jerome Powell. The potential threat to Fed independence rattled markets, especially after Powell recently signaled no near-term rate cuts due to inflation concerns and new U.S. tariffs.
The Japanese yen strengthened significantly, with USD/JPY down 1.1%, bolstered by data showing Japan’s core inflation accelerated in March. The AUD/USD pair also surged 0.8%, supported by broader dollar weakness. Other regional currencies posted gains: the Singapore dollar’s USD/SGD fell 0.5%, the South Korean won’s USD/KRW dropped 0.4%, and the Thai baht’s USD/THB slid 0.7%. The Malaysian ringgit’s USD/MYR dipped 0.8%, while India’s USD/INR declined 0.5%.
The Chinese yuan edged higher, with the onshore USD/CNY down 0.2% and the offshore USD/CNH falling 0.3%. The yuan’s move came after the People’s Bank of China left its loan prime rate unchanged, holding the one-year LPR at 3.1% and the five-year at 3.6%. The decision signals China’s focus on fiscal tools over monetary easing amid rising U.S. trade tensions.
The widespread currency gains underscore growing volatility in global forex markets, driven by U.S. political uncertainty and shifting central bank policies.
