Singapore GDP Grows 5.7% in Q2 2026 as AI-Driven Manufacturing Boosts Economy 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
South Korea’s KOSPI Triggers Trading Curb as AI Chip Stock Selloff Deepens 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
South Korea Central Bank Set to Raise Interest Rates as Inflation Stays Elevated 
Dollar Rises as Middle East Conflict Fuels Inflation and Rate Hike Fears 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Dollar Eases as Middle East Conflict, Fed Outlook and Japan Pension Policy Drive FX Markets 
Currency markets closely monitored the Japanese yen on Friday after suspected intervention by Tokyo triggered significant volatility, while the U.S. dollar began May with a modest rebound following April losses. The U.S. dollar index (DXY) rose 0.2% to 98.23, recovering slightly after posting its worst monthly decline since August last year.
The Japanese yen weakened again, with the USD/JPY pair climbing to around 157. The currency had previously surged after Japan likely intervened when the pair crossed the key 160 level, its highest point since June 2024. Analysts estimate that Tokyo may have spent approximately $34.5 billion in its first intervention since July 2024. However, many experts believe the impact may be short-lived unless additional interventions occur, with expectations that USD/JPY could eventually move back toward the 160 range.
Further pressure on the yen came from weaker-than-expected Tokyo inflation data for April. The consumer price index suggested that government subsidies on food and utilities are continuing to keep inflation subdued. This softer inflation outlook contrasts with the Bank of Japan’s recent hawkish stance, as it raised inflation forecasts and hinted at potential interest rate hikes in the coming months.
Meanwhile, the U.S. dollar found support from ongoing geopolitical tensions and shifting monetary policy expectations. Demand for the greenback increased toward the end of April as concerns grew over a prolonged U.S.-Iran conflict. Although Iran has reportedly proposed revised peace terms through mediators, uncertainty remains after U.S. officials expressed dissatisfaction with the offer.
The Federal Reserve’s latest meeting also signaled a cautious approach, with policymakers showing less willingness to cut interest rates due to persistent inflation risks linked to global tensions. In Europe, both the European Central Bank and the Bank of England kept interest rates unchanged, resulting in limited movement in the euro and British pound.
Overall, forex markets remain influenced by central bank policies, geopolitical risks, and currency intervention, keeping traders focused on yen volatility and the direction of the U.S. dollar.
