ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
Nikkei Plunges 5% as AI Stock Selloff Spreads Across Asia 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
Asian Stocks Slide as Chip Selloff Deepens Ahead of TSMC Earnings 
US Stock Futures Hold Steady as Soft Inflation Data Eases Fed Rate Hike Fears 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Asian Stocks Slide as Nikkei Leads Losses on Tech Selloff and Rising U.S.-Iran Tensions 
Japan Core Inflation Seen Rising in June, Strengthening BOJ Rate Hike Outlook 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Brazil Weighs IP Curbs, Patent Suspensions After New U.S. Tariffs 
Gold Prices Slip as Oil Rally Fuels Inflation Fears, Strengthens Dollar 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Oil Prices Set for Weekly Surge as U.S.-Iran Conflict Fuels Supply Fears 
The U.S. dollar rebounded in volatile Asian trading on Tuesday after President Donald Trump suggested potential tariffs on Canada and Mexico, though specifics were scarce. Trump hinted at a 25% tariff announcement on February 1, surprising markets that had anticipated a more measured approach.
Trade-exposed currencies reacted sharply, with the Canadian dollar and Mexican peso falling. The dollar rose 1.2% to 1.4475 against the Canadian dollar and gained 1.3% on the peso. The dollar index climbed 0.6% to 108.65 after a 1.2% drop on Monday, its steepest daily decline since late 2023.
The euro slipped to $1.0364 from an earlier high of $1.0434, as the European Union, with its substantial trade surplus with the U.S., is seen as a potential target for tariffs. The dollar also rebounded 0.3% against the Japanese yen to 156.06, recovering from a five-week low of 154.90. The yen had strengthened last week on expectations of a Bank of Japan rate hike this Friday.
Market strategists were caught off guard by Trump’s aggressive tariff proposal. "A 25% tariff as a starting point is unexpected," said Shoki Omori, chief global desk strategist at Mizuho Securities. "Markets had anticipated an incremental approach, possibly beginning with China."
The dollar also gained 0.3% on the Chinese yuan to 7.2847. Trump has previously threatened China with tariffs as high as 60%, heightening concerns over trade tensions.
Currency markets are now closely monitoring developments, especially ahead of the Bank of Japan’s policy meeting and potential updates on U.S. trade policy.
