Dollar Holds Near Two-Month High as Yen Approaches 160 
China Consumer Stocks Near Decade Lows as AI Shares Surge 
Canadian Dollar Faces Pressure as Fed-BoC Policy Gap Widens 
Hong Kong Home Prices Stabilize in August After July Decline 
US Comfortable With Canada Trade Standoff as Import Bans Loom 
Oil Surge Pressures Global Stocks as U.S.-Iran Truce Hopes Fade 
Europe’s AI Data Centre Boom Strengthens Case for Nuclear Power 
South Korea Tax Windfall Could Top 50 Trillion Won on Chip Boom 
China Industrial Profit Growth Slows as Weak Demand Offsets AI Gains 
Germany’s 2026 Growth Outlook Strengthens on Fiscal Spending 
China Cuts Tariffs on U.S. Farm Goods but Excludes Soybeans 
UK PM Burnham to Unveil Economic Vision at Labour Conference 
Australia Budget Deficit Narrows to A$22.3 Billion on Stronger Tax Revenue 
Oil Prices Fall on U.S.-Iran Hormuz Deal Hopes 
Fed’s Hammack Says Bond Yield Surge Is Not Driven by Inflation Fears 
Trump to Ease U.S. Fuel-Economy Standards 
Gold Slides Below $4,300 as Oil Surge Fuels Fed Rate Hike Bets 
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Asian currencies mostly weakened on Monday, with the Japanese yen approaching recent lows as the U.S. dollar stayed near a two-month high. Elevated oil prices stemming from the U.S.-Iran standoff and expectations for further Federal Reserve tightening supported the greenback.
The U.S. dollar index gained about 0.2% to 101.12, putting it on course for a roughly 1.7% September increase, its strongest monthly performance since June. USD/JPY climbed 0.3% to around 157.78.
Brent crude rose more than 1% to above $106 per barrel after U.S. President Donald Trump rejected an agreement intended to resolve the Iran conflict and reopen the Strait of Hormuz. Continued uncertainty over energy supplies has increased concerns that higher fuel costs could keep global inflation elevated.
The dollar has also benefited from resilient U.S. economic data and elevated longer-term Treasury yields. Markets are pricing roughly a 65% probability of another Federal Reserve rate hike at the end of October. The Fed raised its benchmark rate to 3.75%-4.00% in September.
Investors are now awaiting the August PCE inflation report on September 30 and September nonfarm payrolls on October 2 for further clues about the Fed's policy outlook.
The yen weakened despite Friday's call between Japanese Finance Minister Satsuki Katayama and U.S. Treasury Secretary Scott Bessent, during which officials reiterated concerns about yen undervaluation. The currency remains under pressure even after the Bank of Japan's September rate increase.
The Australian dollar held near $0.70 ahead of Tuesday's Reserve Bank of Australia decision. Markets expect a 25-basis-point increase to 4.60%, which would bring the cash rate to its highest level in nearly 15 years.
Elsewhere, the Chinese yuan weakened, with USD/CNH near 6.72 and USD/CNY around 6.71. Other Asian currencies also declined, with the South Korean won, Indian rupee, Indonesian rupiah, Malaysian ringgit, Thai baht and Singapore dollar losing ground against the U.S. currency.
