Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Asia Stocks Slip as Iran-Hormuz Tensions Lift Oil Prices, Dollar and Bond Yields 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Dollar Rises as Middle East Conflict Fuels Inflation and Rate Hike Fears 
Gold Prices Fall as US-Iran Conflict, Rising Oil Prices Fuel Fed Rate Concerns 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Singapore GDP Grows 5.7% in Q2 2026 as AI-Driven Manufacturing Boosts Economy 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
The U.S. dollar remained largely flat on Tuesday as currency markets balanced geopolitical risks from escalating U.S.-Iran tensions against hopes for renewed diplomatic progress. The dollar index edged up just 0.04% to 98.38, reflecting cautious investor sentiment rather than decisive movement in either direction.
Tensions in the Middle East intensified after President Donald Trump confirmed the U.S. military launched a blockade of vessels departing Iranian ports. Iran responded by threatening retaliatory action against Gulf neighbors' ports following the collapse of weekend peace talks in Pakistan. Despite this, Reuters confirmed that diplomatic back-channels between Washington and Tehran remained open. Trump noted that Iran had expressed interest in reaching a deal, while Vice President JD Vance signaled expectations that the Strait of Hormuz would gradually reopen to shipping traffic.
Currency strategists warned that any breakdown in the fragile ceasefire could reignite dollar strength. U.S. crude futures reflected the uncertainty, falling over $2 to $96.99 per barrel in early Asian trading.
Against major currencies, the euro gained 0.03% to $1.1761, the Japanese yen firmed slightly to 159.3 per dollar, and the British pound rose 0.03% to $1.3508. The Australian dollar slipped 0.04% to $0.7091, while the New Zealand dollar edged up 0.03% to $0.5868.
Market attention also turned to the Bank of Japan, where the probability of an interest rate hike this month dropped sharply to 40% from 57% just days earlier. Ongoing geopolitical volatility has clouded Japan's economic outlook, prompting BOJ Governor Kazuo Ueda to emphasize caution. Analysts noted that if the BOJ opts to hold rates, the dollar-yen pair could break above the psychologically critical 160 threshold, potentially triggering currency intervention.
In digital assets, Bitcoin climbed 1.70% to $74,438.67, while Ethereum surged 5.32% to $2,373.32, offering a notable contrast to the subdued mood in traditional forex markets.
