Asian Currencies Hold Steady as Middle East Tensions Offset Weaker US Dollar 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
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 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Asian Stocks Slide as Chip Selloff Deepens Ahead of TSMC Earnings 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Port of Los Angeles Posts Record June Cargo Volume as Importers Rush Ahead of U.S. Tariffs 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Asian Stocks Slide as Oil Surge, U.S.-Iran Tensions and Fed Rate Bets Weigh on Markets 
Asian currencies traded in a narrow range on Tuesday as the U.S. dollar remained under pressure amid growing geopolitical uncertainty and anticipation of an upcoming Federal Reserve policy meeting. Currency markets across the region showed limited movement as investors largely stayed on the sidelines, awaiting clearer signals from the Fed on interest rate policy and assessing global political risks.
The Japanese yen weakened slightly after a strong rally in the previous session, when it surged to its strongest level in nearly three months. The move followed comments from Japanese Prime Minister Sanae Takaichi, who warned against excessive volatility in the currency and reignited speculation over potential government intervention. On Tuesday, the USD/JPY pair edged up about 0.2% to around 154.50, although the yen remained close to multi-year highs. The currency has been supported by expectations of intervention and a relatively hawkish tone struck by the Bank of Japan at its January meeting. However, concerns over Japan’s fiscal outlook and heavy government spending under Takaichi recently triggered a sharp selloff in Japanese government bonds, which limited further gains in the yen.
Across the rest of Asia, foreign exchange markets were largely muted. The dollar index steadied after significant losses last week, reflecting cautious sentiment ahead of the Fed’s interest rate decision, where policymakers are widely expected to keep rates unchanged. Mixed U.S. economic data, along with concerns over fiscal policy and the Federal Reserve’s independence under President Donald Trump, weighed on the greenback and kept Asian currencies rangebound.
The Chinese yuan hovered near its strongest level in more than two years, while the Singapore dollar and Australian dollar showed little movement. The Indian rupee stabilized after recently hitting record lows above 91 per dollar, as optimism around an India-Europe trade deal failed to lift sentiment. The Taiwan dollar saw modest gains.
Meanwhile, the South Korean won weakened slightly after President Trump announced plans to raise tariffs to 25% on certain South Korean exports, including automobiles, pharmaceuticals, and lumber. Although Seoul stated it had not received formal notification of the tariff hike, the comments added pressure to the won and highlighted ongoing trade uncertainties affecting Asian currency markets.
