Gold Price Climbs Over 1% as Dollar Weakens, Fed Rate Debate and Iran Tensions Remain in Focus 
Iraq PM Visits Washington as U.S. Oil, Gas Deals Take Center Stage 
Gordie Howe Bridge to Open July 27 After U.S.-Canada Reach Toll Revenue Agreement 
Deutsche Bank Sees Global Capital Shifts Reshaping Long-Term U.S. Dollar Outlook 
Japanese Yen Rises as Pension Fund Plan and BOJ Rate Hike Bets Weigh on Dollar 
South Korea’s KOSPI Triggers Trading Curb as AI Chip Stock Selloff Deepens 
Fed Chair Kevin Warsh Launches Task Forces to Overhaul U.S. Monetary Policy Framework 
BOJ May Raise Japan Growth Forecast While Keeping Focus on Inflation Risks 
EU Weighs New Trade Restrictions on Israeli West Bank Settlements 
US Stock Futures Slide as Iran Conflict Escalates Ahead of Key Q2 Earnings Week 
Asia Stocks Slip as Iran-Hormuz Tensions Lift Oil Prices, Dollar and Bond Yields 
Japan Eyes Bigger GPIF Investment in Domestic Assets as BOJ Independence Concerns Grow 
European Regulators Clash With U.S. Treasury Over Private Credit Transparency 
Dollar Rises as Middle East Conflict Fuels Inflation and Rate Hike Fears 
Asian Stocks Rise as AI Chip Rally Offsets Middle East Tensions 
Japan Wholesale Inflation Jumps as Energy Shock Drives Import Costs Higher 
Most Asian currencies traded lower on Monday as a stronger U.S. dollar and rising Treasury yields pressured regional foreign exchange markets, while the Japanese yen drew support from renewed speculation that Japan’s massive public pension fund could increase investments in domestic assets.
Investor sentiment remained cautious after fresh missile exchanges between the United States and Iran revived geopolitical tensions. Tehran also reiterated claims that it had closed the Strait of Hormuz, raising concerns over global energy supplies and reinforcing fears that higher oil prices could keep inflation elevated.
The stronger inflation outlook boosted the U.S. dollar as traders scaled back expectations for Federal Reserve interest rate cuts ahead of Fed Chair Kevin Warsh’s first congressional testimony and the release of U.S. inflation data later this week.
The Japanese yen remained a key focus after Finance Minister Satsuki Katayama said she wanted public pension funds, including the Government Pension Investment Fund (GPIF), to increase exposure to Japanese financial assets. The remarks fueled speculation that the GPIF could gradually repatriate part of its overseas investments, creating sustained demand for the yen.
Although the USD/JPY pair edged about 0.2% higher to around 162.1, it remained below last week’s peak near 162.7, when intervention concerns weighed on the pair. Analysts estimate that a shift in GPIF allocations could generate between JPY12 trillion and JPY30 trillion in potential yen buying, offering meaningful long-term support for Japan’s currency.
Separately, reports indicated the Bank of Japan may raise its fiscal 2026 economic growth forecast later this month while maintaining its view that inflation risks remain tilted to the upside, supported by a weaker yen and resilient artificial intelligence-related investment.
Elsewhere, regional currencies broadly weakened. The South Korean won fell as USD/KRW climbed above 1,507, while the Taiwan dollar stayed under pressure amid continued foreign selling of technology stocks. South Korea’s KOSPI briefly triggered a trading curb after falling more than 5%.
The Australian dollar also weakened, while China’s yuan remained relatively stable. Investors are now watching key economic releases this week, including China’s June trade figures, second-quarter GDP, retail sales, industrial production data, Singapore’s preliminary second-quarter GDP, and the Bank of Korea’s upcoming monetary policy decision.
