Singapore GDP Grows 5.7% in Q2 2026 as AI-Driven Manufacturing Boosts Economy 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
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 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
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 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
Dollar Rises as Middle East Conflict Fuels Inflation and Rate Hike Fears 
Asian Currencies Weaken as Stronger Dollar Weighs, Yen Supported by GPIF Repatriation Hopes 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
The U.S. dollar edged lower on Monday as improving risk sentiment reduced demand for traditional safe-haven assets. Investors reacted positively after Iran and Israel halted military strikes following a call for restraint from U.S. President Donald Trump, easing concerns about a broader regional conflict.
The U.S. Dollar Index (DXY), which measures the greenback against a basket of major currencies, slipped 0.1% to 100.00. Despite the decline, the dollar remains supported by expectations that the Federal Reserve could maintain a tighter monetary policy stance after stronger-than-expected U.S. employment data.
Last week’s robust nonfarm payrolls report reinforced confidence in the strength of the U.S. labor market and prompted traders to reassess interest rate expectations. Analysts noted that resilient economic growth and persistent inflation pressures may encourage the Federal Reserve to keep interest rates elevated for longer, a factor that typically supports the U.S. dollar.
Market attention is now focused on upcoming U.S. inflation reports. The Consumer Price Index (CPI) is scheduled for release on Wednesday, followed by the Producer Price Index (PPI) on Thursday. Stronger-than-expected inflation readings could increase the likelihood of future Federal Reserve rate hikes, boosting demand for the dollar.
Meanwhile, geopolitical tensions in the Middle East showed signs of easing. Recent exchanges between Iran and Israel raised fears of renewed instability, but both countries later announced a pause in military operations. President Trump stated that efforts toward a peace agreement remain ongoing, helping to calm global financial markets.
In currency trading, the euro gained 0.1% against the dollar to trade near $1.1530, while the British pound remained largely unchanged at $1.3340. The Japanese yen strengthened modestly but continued to trade above the closely watched 160 level against the dollar.
Economic data from Japan showed first-quarter 2026 GDP growth was revised to an annualized 1.8%, lower than the previous estimate of 2.1% but above market forecasts. Analysts cited weaker business investment and higher oil prices as challenges for Japan’s economy, although strong demand for artificial intelligence-related semiconductor products helped offset some of the pressure.
With inflation data, Federal Reserve policy expectations, and geopolitical developments all influencing sentiment, global currency markets are expected to remain highly active throughout the week.
