Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Gold Prices Slip as Oil Rally Fuels Inflation Fears, Strengthens Dollar 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
Port of Los Angeles Posts Record June Cargo Volume as Importers Rush Ahead of U.S. Tariffs 
Asian Stocks Slide as Chip Selloff Deepens Ahead of TSMC Earnings 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
Asian Stocks Slide as Oil Surge, U.S.-Iran Tensions and Fed Rate Bets Weigh on Markets 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
The U.S. dollar hovered near three-week lows against the euro and Swiss franc on Wednesday as renewed geopolitical tensions and fiscal concerns triggered a broad selloff across U.S. assets, including stocks, bonds, and the currency itself. Investor sentiment weakened after the White House revived threats linked to Greenland, reviving the so-called “Sell America” trade that first emerged earlier this year following tariff announcements.
The dollar index, which tracks the greenback against six major currencies, fell 0.53% overnight, its sharpest single-day decline in six weeks, before stabilizing around 98.541. The euro climbed more than 1% at one point on Tuesday, reaching its strongest level since late December at $1.1770, before easing slightly to trade near $1.1720. Meanwhile, the dollar slid nearly 1.2% against the Swiss franc, touching 0.78795, also a December low, before recovering modestly.
Market analysts cited growing concerns over prolonged uncertainty, strained international alliances, declining confidence in U.S. leadership, potential retaliatory measures, and accelerating de-dollarization trends. Although investors remain hopeful that tensions may ease, uncertainty continues to weigh on the dollar.
U.S. equities also felt the pressure, with the S&P 500 and Nasdaq Composite falling to one-month lows as investors returned from a long holiday weekend. Treasury yields surged to multi-month highs, reflecting heavy selling in government bonds.
In Asia, the Japanese yen faced its own turmoil. The currency weakened sharply after Prime Minister Sanae Takaichi called snap elections for February 8 and pledged aggressive fiscal expansion. This fueled a selloff in Japanese government bonds, pushing long-term yields to record highs. The 40-year JGB yield spiked above 4.2% before easing slightly, while the yen hit record lows against both the euro and Swiss franc.
With the Bank of Japan expected to hold rates steady at its upcoming policy meeting, markets will closely watch guidance on future tightening as inflation risks rise amid political uncertainty and a weak yen.
