Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
Asia’s IPO Market Set for Strong Growth as China and India Drive Investor Diversification 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
Dollar Holds Steady as Markets Shift Focus to 2026 Rate Cut Expectations 
Asian Markets Stabilize as Wall Street Rebounds and Rate Concerns Ease 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
Australia’s Economic Growth Slows in Q3 Despite Strong Investment Activity 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
The U.S. dollar weakened on Wednesday as investors embraced risk following a fragile ceasefire between Israel and Iran, brokered by President Donald Trump. Global markets rallied, with equities hitting record highs, as both nations signaled a pause in hostilities after Trump publicly condemned violations of the truce.
During the 12-day conflict, the dollar served as a safe haven, but optimism over a de-escalation spurred broad selling. In early Asian trading, currency movements remained subdued. The euro hovered near its highest level since October 2021 at $1.1621. The British pound slipped slightly to $1.3615, just off a two-year high. The Australian dollar edged up 0.02% to $0.6492 after a strong rally, while the New Zealand dollar gained 0.13% to $0.6015.
The Japanese yen held steady at 144.96, as Bank of Japan officials showed caution over rate hikes amid uncertainty from U.S. tariffs. The Swiss franc, which surged to a 10.5-year high on Tuesday, stabilized at 0.8049 per dollar.
The U.S. dollar index dipped to 97.91. While Fed Chair Jerome Powell reiterated a patient stance on rate cuts during his congressional testimony, markets still price in an 18% chance of a rate cut in July. Analysts at ANZ expect rate cuts could resume in September due to slowing economic growth and easing inflation, despite new tariffs.
Recent U.S. data, including a drop in consumer confidence and signs of labor market weakness, reinforced expectations of nearly 60 basis points of rate cuts by year-end. Meanwhile, the two-year Treasury yield fell to 3.7870%, its lowest in over a month, while the 10-year yield was steady at 4.3043%.
