Trump Says No Hormuz Strait Tolls During 60-Day Iran Ceasefire 
Asian Stocks Surge as Oil Prices Fall and Strong US Dollar Weighs on Markets 
US Stock Futures Jump on Reports of Preliminary US-Iran Peace Deal Despite Fed’s Hawkish Outlook 
Asian Currencies Steady as Dollar Holds Firm Ahead of Fed Decision and US-Iran Deal Details 
Canada Imposes 10% Tariff on Canned Vegetable Imports to Protect Domestic Industry 
Russia Stocks End Flat as MOEX Index Hits New 52-Week Low; Gold Falls and Oil Mixed 
German Auto Suppliers Turn Bearish as Investment and Jobs Shift Overseas 
Oil Prices Drop as U.S.-Iran Peace Deal Eases Supply Concerns 
Gold Prices Rebound on U.S.-Iran Peace Deal Optimism Despite Fed Rate Hike Signals 
BOJ Signals More Rate Hikes as Inflation Risks Rise Amid Energy Price Pressures 
Trump and Iran Sign Framework Peace Deal in France Amid Ongoing Middle East Tensions 
Dollar Hits One-Month High as Hawkish Fed Outlook Boosts Greenback 
Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 
Asian Currencies Stabilize as Dollar Holds Near Two-Month High After Fed Hawkish Signal 
Italy’s Economy Outpaces Eurozone Peers as Investment Spending Fuels Growth 
Trump Questions USMCA Renewal as Trade Talks Continue 
Oil Prices Slide as U.S.-Iran Deal and Hormuz Reopening Ease Supply Concerns 
Asian currencies and the U.S. dollar traded largely unchanged on Wednesday after Federal Reserve Chair Jerome Powell delivered a cautious outlook on monetary policy. Powell stressed the difficulty of balancing inflation control with employment risks, noting that there is no “risk-free path” as the central bank manages persistent price pressures alongside weakening job growth.
The U.S. Dollar Index, which tracks the greenback against a basket of major peers, inched up 0.1% and held near post-Fed decision levels. Futures tied to the index also rose 0.1% in early Asian trading. Powell’s remarks left markets uncertain about the timing of the next rate cut, though investors continue to price in two additional cuts this year in line with Fed guidance. Chicago Fed President Austan Goolsbee later echoed that the central bank has room to lower borrowing costs if inflation trends lower, but warned against aggressive easing given ongoing inflation risks.
Currency markets responded with muted moves. The Japanese yen’s USD/JPY pair gained 0.1%, while the South Korean won’s USD/KRW stayed flat. The Singapore dollar’s USD/SGD edged up 0.1%, and the Indian rupee’s USD/INR showed little change. In China, both the onshore yuan (USD/CNY) and offshore yuan (USD/CNH) rose 0.1%. Traders now look ahead to Friday’s U.S. core Personal Consumption Expenditures (PCE) report, the Fed’s preferred inflation gauge.
The standout performer was the Australian dollar. The Aussie rose 0.4% against the greenback after consumer price index (CPI) data showed a 3.0% year-over-year rise in August, slightly above forecasts and the fastest pace in a year. The figure hit the top of the Reserve Bank of Australia’s 2–3% target range, raising doubts about further rate cuts despite earlier signals of easing. Markets expect the RBA to hold its 3.6% cash rate steady at its September 29–30 meeting before potentially trimming rates in November.
Meanwhile, New Zealand appointed Anna Breman as the new Governor of the Reserve Bank of New Zealand, effective December 1. Breman, a former Deputy Governor at Sweden’s Riksbank, becomes the first woman and first foreign national to lead the RBNZ. The New Zealand dollar, however, remained flat against the U.S. dollar.
