Japan, U.S. Stay Aligned on Yen as Currency Surges 
China Expands Influence in Global Gold Market 
Japan Foreign Reserves Plunge $79.6 Billion After Record Yen Intervention 
China Boosts Gold Reserves by 650,000 Ounces as Prices Rally 
European Stocks Flat as Iran Tensions, ECB Rate Hike Loom 
Oil Prices Climb as Iran Threatens Gulf Energy Infrastructure 
Gold Prices Rise as Yen Rally Weakens Dollar 
Yen Rebounds as BOJ Rate Hike Bets Rise 
Gold Holds Near $4,400 as Fed Hike Bets Rise 
Hungary Industrial Output Beats Forecasts With 4.7% July Growth 
Iran Vows Tougher Response as U.S. Sanctions Squeeze Economy 
China Exports Surge 25% in August as Trade Surplus Hits $119 Billion 
Asian Stocks Rally as AI Optimism Fuels Chipmaker Surge 
Iran Plans New Gulf Restricted Zone as Hormuz Tensions Push Oil Higher 
UK House Prices Fall for First Time Since 2023 
China to Inject $45 Billion Into State Financial Institutions 
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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.
