Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Dollar Eases as Middle East Conflict, Fed Outlook and Japan Pension Policy Drive FX Markets 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
South Korea’s KOSPI Triggers Trading Curb as AI Chip Stock Selloff Deepens 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Port of Los Angeles Posts Record June Cargo Volume as Importers Rush Ahead of U.S. Tariffs 
European Stocks Slip as Middle East Tensions and Hormuz Threat Rattle Markets 
The U.S. dollar held onto recent gains Tuesday as investors looked ahead to key signals from the Federal Reserve that could clarify the timing of anticipated interest rate cuts. Currency markets remained relatively quiet due to thin trading volumes, with several Asian markets closed for the Lunar New Year and U.S. markets recently observing the President’s Day holiday.
The dollar index, which tracks the greenback against a basket of major currencies, was steady at 97.12 after rising 0.2% in the previous session. The euro slipped slightly to $1.1843, while sterling eased to $1.3616. Meanwhile, the Japanese yen strengthened 0.15% to 153.28 per dollar, trimming earlier losses triggered by weaker-than-expected Japanese economic growth data. Japan’s economy expanded at an annualized rate of just 0.2% last quarter, increasing speculation that policymakers may introduce additional stimulus measures.
Market participants are closely watching the release of the Federal Open Market Committee minutes from January’s meeting, due Wednesday, along with advance U.S. GDP figures. Recent data showing softer U.S. consumer price inflation in January has strengthened expectations that the Fed could begin easing monetary policy in June. Money markets are currently pricing in roughly 62 basis points of rate cuts in 2026, implying at least two quarter-point reductions, with an 80% probability of a June cut.
According to Commonwealth Bank of Australia strategist Kristina Clifton, the broader narrative of U.S. economic resilience, often described as “U.S. exceptionalism,” may remain a key driver of dollar strength through 2026. While markets expect a June rate cut, her outlook includes a potential follow-up reduction in July.
The Australian dollar fell to $0.7064 following the Reserve Bank of Australia’s February meeting minutes, which highlighted ongoing inflation concerns. The New Zealand dollar edged lower ahead of the Reserve Bank of New Zealand’s policy decision. In cryptocurrencies, bitcoin traded near $68,882, while ether hovered around $1,999, reflecting steady investor interest in digital assets.
