US Dollar Slips After PCE Inflation Data as Fed Rate Hike Expectations Stay Elevated 
Japan Targets 1%+ Real Economic Growth With ¥370 Trillion Investment Plan 
Asian Currencies Stay Range-Bound as Investors Eye China Data, RBNZ Outlook and U.S.-Iran Ceasefire 
Oil Prices Drop as Middle East Supply Recovery Eases Market Concerns 
World Bank Approves $1.1 Billion Emergency Funding for Bangladesh Amid Food and Energy Price Pressures 
Asian Stocks Sink as Apple Price Hikes Spark AI Valuation Fears, South Korea and Japan Lead Selloff 
China Expands Export Controls, Adds 20 Japanese Companies to Restricted List 
Asian Stocks Slip as US-Iran Ceasefire Hopes Lift Oil, Dollar Strength Persists 
Bank Regulation Rollbacks in the U.S. and UK Could Increase Financial Risks, Study Warns 
Wall Street Ends Mixed as Micron Surges, Apple Drops After Price Hikes 
Gold Prices Rise Above $4,000 as Inflation Data and Weaker Dollar Boost Demand 
Iran Attack in Strait of Hormuz Pushes Oil Prices Higher 
Asian Currencies Trade Mixed as Yen Hovers Near 40-Year Low, Dollar Holds Firm on Fed Outlook 
China Sets 1.25% Overnight Reverse Repo Rate Below Market Expectations 
US Dollar Slips After PCE Inflation Data Eases Fed Rate Hike Expectations 
Morgan Stanley Sees Chinese Auto Market Recovery Gaining Momentum in Late Summer 
Dollar Maintains Weekly Gains
Asian currencies weakened on Friday, weighed down by a stronger U.S. dollar. The dollar's rise is driven by expectations of slower interest rate cuts from the Federal Reserve, setting the stage for a fourth consecutive week of gains.
Japanese Yen Steadies Amid Election and Intervention Concerns
The Japanese yen hovered near a three-month low at ¥152 against the dollar. Traders remain cautious ahead of Japan's general election this weekend. Polls suggest the ruling Liberal Democratic Party may struggle to secure a majority, which could limit Prime Minister Shigeru Ishiba's ability to enact further economic reforms.
Japan’s government has also issued warnings about possible currency intervention due to the yen’s recent weakness, which has contributed to market volatility.
Dollar's Strength Pressures Asian Currencies
The dollar index remained strong, gaining about 0.6% this week. In addition to Federal Reserve policy, the dollar is supported by speculation that Donald Trump may win the 2024 U.S. presidential election, which could lead to inflationary policies and higher long-term interest rates.
This scenario has weighed on most Asian currencies, with the Chinese yuan rising by 0.1% and the South Korean won surging by 0.7%. The Australian dollar fell by 0.3%, while the Indian rupee remained near record lows.
