Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
US Stock Futures Hold Steady as Soft Inflation Data Eases Fed Rate Hike Fears 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
Gold Prices Slip as Oil Rally Fuels Inflation Fears, Strengthens Dollar 
Asian Currencies Hold Steady as Middle East Tensions Offset Weaker US Dollar 
Asian Stocks Slide as Chip Selloff Deepens Ahead of TSMC Earnings 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
The U.S. dollar weakened to its lowest level in a week during early trading on Monday as renewed geopolitical tensions involving the White House and the European Union triggered a broad selloff across U.S. financial markets. Investors pulled back from U.S. stocks, Treasury bonds, and the greenback amid concerns that escalating trade threats and diplomatic strain could undermine confidence in U.S. assets.
The dollar index, which tracks the currency against a basket of six major peers, fell 0.1% to 99.004, marking its weakest point since January 14. Market sentiment deteriorated after U.S. President Donald Trump revived tariff threats against European allies, linked to the future of Greenland. This development reignited what traders have dubbed the “Sell America” trade, reminiscent of market reactions following last year’s Liberation Day tariff announcement in April. U.S. markets remained closed on Monday due to the Martin Luther King Jr. Day holiday and are set to reopen on Tuesday.
According to Tony Sycamore, a market analyst at IG in Sydney, investors are reducing exposure to dollar-denominated assets due to fears of prolonged uncertainty, strained international alliances, declining confidence in U.S. leadership, and the risk of retaliation from trade partners. He also noted that concerns about accelerating de-dollarization trends are weighing on sentiment, even as some hope the administration may eventually soften its stance.
U.S. Treasury yields edged higher, with the benchmark 10-year yield rising 3 basis points to 4.2586%. Meanwhile, Fed funds futures indicate a 94.5% probability that the Federal Reserve will keep interest rates unchanged at its upcoming meeting, according to CME Group’s FedWatch tool.
In currency markets, the dollar was flat against the Japanese yen at 158.175 after Japan’s prime minister announced snap elections and proposed suspending a food sales tax, raising fiscal concerns. The dollar also held steady against the offshore Chinese yuan at 6.9536 ahead of an expected rate hold by the People’s Bank of China. The euro and British pound were largely unchanged, while the Australian and New Zealand dollars edged lower. In cryptocurrencies, bitcoin slipped below $93,000 and ether also declined, reflecting broader risk aversion.
