European Stocks Slip as Middle East Tensions and Hormuz Threat Rattle Markets 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
Asia Stocks Slip as Iran-Hormuz Tensions Lift Oil Prices, Dollar and Bond Yields 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Dollar Eases as Middle East Conflict, Fed Outlook and Japan Pension Policy Drive FX Markets 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
South Korea Central Bank Set to Raise Interest Rates as Inflation Stays Elevated 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Dollar Rises as Middle East Conflict Fuels Inflation and Rate Hike Fears 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Asian Currencies Weaken as Stronger Dollar Weighs, Yen Supported by GPIF Repatriation Hopes 
Iraq PM Visits Washington as U.S. Oil, Gas Deals Take Center Stage 
The U.S. dollar slipped on Wednesday as investors shifted away from safe-haven assets and moved toward riskier investments following renewed optimism over a possible peace agreement between Washington and Tehran. The decline came as reports suggested the White House and Iran were nearing a framework agreement that could ease tensions in the Middle East and reduce pressure on global oil markets.
The U.S. Dollar Index, which measures the greenback against a basket of major currencies, fell by 0.4% to 98.05. Market sentiment improved after reports indicated that both nations were discussing a temporary nuclear agreement that could eventually lead to sanctions relief and the release of frozen Iranian assets. Investors also reacted positively to signs that restrictions surrounding the Strait of Hormuz may be eased, helping calm fears over disruptions to global oil supplies.
President Donald Trump stated that if Iran accepts the proposed terms, tensions could significantly decline and commercial transit through the Strait of Hormuz would reopen fully. However, he warned that military action could intensify if negotiations fail. The developments pushed oil prices slightly lower, although prices remain elevated compared to pre-conflict levels. Analysts believe lower oil prices could weaken the dollar further by reducing the United States’ relative economic advantage in energy markets.
Meanwhile, the Japanese yen strengthened sharply against the dollar as traders anticipated possible currency intervention by Japanese authorities. The yen gained nearly 1%, with investors believing Tokyo may step in again to prevent the USD/JPY pair from rising above the key 160 level. Japanese officials have repeatedly warned against excessive currency speculation in recent weeks.
Elsewhere, the euro and British pound also posted gains against the dollar, while the Australian dollar climbed after Australia’s central bank raised interest rates for a third consecutive meeting.
