South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
US Stock Futures Hold Steady as Soft Inflation Data Eases Fed Rate Hike Fears 
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 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
Gold Prices Slip as Oil Rally Fuels Inflation Fears, Strengthens Dollar 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
Port of Los Angeles Posts Record June Cargo Volume as Importers Rush Ahead of U.S. Tariffs 
Asian Currencies Hold Steady as Middle East Tensions Offset Weaker US Dollar 
The Indian rupee is expected to remain under pressure this week as steep U.S. tariffs on Indian exports and the Reserve Bank of India’s (RBI) upcoming policy decision weigh on sentiment. The rupee closed at 87.54 per U.S. dollar on Friday, down 1.2% for the week, marking its weakest level since February. Persistent foreign portfolio outflows and a 25% levy on Indian exports have added to the decline, while fresh U.S. tariff announcements on dozens of trading partners pushed other Asian currencies to multi-month lows.
The U.S. dollar index recorded its strongest weekly gain since 2022 as expectations for a September Fed rate cut faded. However, weaker-than-expected U.S. jobs data and a rise in unemployment to 4.2% revived market bets, with odds of a cut now at 80%.
Investors are also eyeing the maturity of a $5 billion RBI dollar-rupee swap on Monday. Analysts, including Alok Singh of CSB Bank, expect the RBI to manage liquidity without excessive volatility, with the rupee likely to trade between 87.00 and 87.80.
India’s 10-year benchmark bond yield ended last week at 6.368%, up 2 bps, and is expected to stay within 6.33%–6.38% until Wednesday’s policy decision. While some anticipate a 25-bps cut due to June’s six-year-low retail inflation and expectations of a further drop in July, most economists expect no change after the RBI’s surprise 50-bps cut in June and its shift to a neutral stance.
Key upcoming events include India’s July HSBC services PMI and composite PMI on August 5, and the RBI policy decision on August 6. U.S. data releases this week—covering factory orders, trade figures, and PMIs—could also influence market sentiment and currency movements.
