South Korea’s KOSPI Triggers Trading Curb as AI Chip Stock Selloff Deepens 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
Singapore GDP Grows 5.7% in Q2 2026 as AI-Driven Manufacturing Boosts Economy 
Asian Currencies Weaken as Stronger Dollar Weighs, Yen Supported by GPIF Repatriation Hopes 
Dollar Rises as Middle East Conflict Fuels Inflation and Rate Hike Fears 
Asia Stocks Slip as Iran-Hormuz Tensions Lift Oil Prices, Dollar and Bond Yields 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
Dollar Eases as Middle East Conflict, Fed Outlook and Japan Pension Policy Drive FX Markets 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
Gold Prices Fall as US-Iran Conflict, Rising Oil Prices Fuel Fed Rate Concerns 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
European Stocks Slip as Middle East Tensions and Hormuz Threat Rattle Markets 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
The U.S. dollar remained steady in Asian trading on Monday, while most Asian currencies moved within a narrow range as investors weighed geopolitical risks and uncertainty surrounding U.S. interest rates. Trading activity was relatively subdued due to public holidays in Japan and mainland China, limiting overall market momentum.
The Japanese yen strengthened further after reports of government intervention boosted the currency last week, particularly after the USD/JPY pair crossed the critical 160 level. Meanwhile, the Australian dollar hovered near a four-year high ahead of the Reserve Bank of Australia’s anticipated interest rate hike. Markets widely expect the RBA to raise rates by 25 basis points, marking its third increase this year as policymakers respond to renewed inflation pressures.
Global currency markets showed little reaction to U.S. President Donald Trump’s announcement of a potential operation to support shipping through the Strait of Hormuz, alongside ongoing indirect talks with Iran. However, the prolonged Iran conflict continues to influence investor sentiment, especially due to its potential impact on oil prices and inflation, which has provided underlying support for the dollar.
The U.S. Dollar Index remained stable above the 98 level. Minneapolis Federal Reserve President Neel Kashkari signaled a cautious outlook, highlighting that persistent geopolitical tensions could fuel inflation. He did not rule out further rate hikes and indicated that the Federal Reserve may delay rate cuts due to economic uncertainty. His stance reflects a more hawkish tone from the Fed, surprising some market participants.
Across Asia, currencies showed modest movements. The South Korean won and Singapore dollar edged slightly higher against the dollar, while the Indian rupee remained near record lows. The Chinese yuan also saw minor gains, and the yen continued to outperform.
Investors are now closely watching upcoming U.S. nonfarm payrolls data for further insight into the strength of the economy and future monetary policy direction.
