US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Gold Prices Fall as US-Iran Conflict, Rising Oil Prices Fuel Fed Rate Concerns 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
Asian Stocks Slide as Oil Surge, U.S.-Iran Tensions and Fed Rate Bets Weigh on Markets 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
South Korea Central Bank Set to Raise Interest Rates as Inflation Stays Elevated 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
The U.S. dollar slipped on Monday as optimism surrounding a potential U.S.-Iran peace agreement improved investor sentiment and reduced demand for safe-haven assets. Trading activity remained light due to public holidays in the United States, Hong Kong, and South Korea, but currency markets still reacted strongly to geopolitical developments and falling oil prices.
The U.S. Dollar Index and dollar futures both declined by 0.2% after former President Donald Trump stated that Washington and Tehran had largely negotiated a framework agreement aimed at ending tensions and reopening the Strait of Hormuz. U.S. Secretary of State Marco Rubio also confirmed that both sides were working on a “solid” framework covering regional security and Iran’s nuclear activities.
Although Iran acknowledged progress in discussions, it reportedly resisted U.S. demands regarding its enriched uranium stockpile. Despite lingering uncertainty, investors welcomed signs of de-escalation, leading to a sharp drop in oil prices. Lower crude prices eased concerns over energy-driven inflation, reducing expectations for future U.S. interest rate hikes and putting pressure on the dollar.
Major global currencies strengthened against the greenback. The euro and British pound gained between 0.3% and 0.4%, while several Asian currencies also advanced.
The Indian rupee emerged as one of the strongest performers, with USD/INR falling 0.5%. The move followed comments from Reserve Bank of India Governor Sanjay Malhotra, who said the rupee appeared undervalued and pledged continued intervention to stabilize currency markets.
Elsewhere in Asia, the Japanese yen and Chinese yuan both posted modest gains. The Australian dollar climbed 0.5% after recovering from losses tied to weak employment data last week. Meanwhile, the Singapore dollar strengthened after first-quarter GDP figures exceeded market expectations.
Overall, easing geopolitical tensions and softer oil prices helped drive a broader rally in global currencies while weakening the U.S. dollar.
