Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Singapore GDP Grows 5.7% in Q2 2026 as AI-Driven Manufacturing Boosts Economy 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Asian Stocks Slide as Oil Surge, U.S.-Iran Tensions and Fed Rate Bets Weigh on Markets 
South Korea Central Bank Set to Raise Interest Rates as Inflation Stays Elevated 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
South Korea’s KOSPI Triggers Trading Curb as AI Chip Stock Selloff Deepens 
Dollar Eases as Middle East Conflict, Fed Outlook and Japan Pension Policy Drive FX Markets 
US Stock Futures Hold Steady as Soft Inflation Data Eases Fed Rate Hike Fears 
The U.S. dollar is on track to record its strongest weekly performance since October, supported by upbeat economic data, a hawkish Federal Reserve outlook, and rising geopolitical tensions between the United States and Iran. Stronger-than-expected labor market figures, including a drop in weekly jobless claims, reinforced confidence in the resilience of the U.S. economy and boosted demand for the greenback.
In early Asian trading, the dollar held firm near a one-month high, pressuring major currencies. Sterling hovered around $1.3457, close to a one-month low, and is set for a weekly decline of nearly 1.5%. The euro slipped slightly to $1.1768, heading for a 0.8% weekly loss amid uncertainty surrounding European Central Bank President Christine Lagarde’s tenure. Against a basket of currencies, the U.S. dollar index stood at 97.89, marking a gain of more than 1% for the week.
Federal Reserve policy expectations remain a central driver of currency markets. Recent Fed minutes revealed several policymakers are open to further rate hikes if inflation remains persistent. Although investors are still pricing in roughly two rate cuts this year, the probability of a June cut has eased to around 58%, according to CME FedWatch data. Upcoming releases of the U.S. core PCE price index and fourth-quarter GDP figures are expected to influence the next move in forex markets.
Geopolitical risks have also fueled safe-haven demand for the dollar. U.S. President Donald Trump warned Iran to reach a nuclear agreement within 10 to 15 days, prompting threats of retaliation from Tehran. Escalating tensions could significantly impact oil prices and global currency markets.
Elsewhere, the Australian dollar traded at $0.7055, supported by hawkish domestic rate expectations, while the New Zealand dollar fell to $0.5967 amid a dovish outlook from the Reserve Bank of New Zealand. The Japanese yen weakened to 155.08 per dollar after Japan’s core inflation slowed to 2.0%, reducing pressure on the Bank of Japan to tighten policy further.
