Japan Core Inflation Seen Rising in June, Strengthening BOJ Rate Hike Outlook 
Asian Currencies Hold Steady as Middle East Tensions Offset Weaker US Dollar 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
US Stock Futures Hold Steady as Soft Inflation Data Eases Fed Rate Hike Fears 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
AI Chip Stocks Face Valuation Pressure as Investors Shift Toward Big Tech and Software 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
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 
Gold Prices Slip as Oil Rally Fuels Inflation Fears, Strengthens Dollar 
Malaysia Q2 Economy Grows 5.8%, Beating Forecasts on Strong Tech Exports and Domestic Demand 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
Asian Stocks Slide as Nikkei Leads Losses on Tech Selloff and Rising U.S.-Iran Tensions 
Nikkei Plunges 5% as AI Stock Selloff Spreads Across Asia 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
The U.S. dollar held firm on Wednesday, supported by safe-haven demand as the ongoing conflict between Israel and Iran escalated. Investors remained cautious ahead of the Federal Reserve’s interest rate decision, fueling demand for the greenback.
Israel has intensified strikes on Iran in an attempt to curb its nuclear capabilities, while calling for regime change. The U.S. has increased its military presence in the region, prompting concerns of wider conflict that could impact global energy supplies and trade routes. As a result, the dollar has gained nearly 1% against major currencies like the yen, Swiss franc, and euro since last Thursday.
Although the dollar had dropped over 8% earlier this year amid doubts over U.S. economic strength and protectionist trade policies, it remains a global safe-haven due to its liquidity. Analysts, including NAB’s Rodrigo Catril, suggest that while structural shifts are weakening its dominance, risk aversion still supports the dollar.
On Wednesday, the dollar rose to a one-week high of 145.21 yen. The Swiss franc was steady at 0.816 per dollar, while the euro edged up 0.1% to $1.149. The U.S. Dollar Index remained flat after a 0.6% gain in the previous session.
Higher oil prices—around $75 a barrel—have weighed on the euro and yen, as the EU and Japan are net importers, unlike the U.S., which is a net exporter.
All eyes now turn to the Fed, expected to keep rates unchanged. Investors await its economic outlook, particularly regarding inflation and growth. The Bank of Japan kept rates steady on Tuesday, while central banks in the UK, Switzerland, Norway, and Sweden are set to announce decisions later this week. Meanwhile, Japan's exports fell in May for the first time in eight months, signaling global trade strain.
