Dollar Rises as Middle East Conflict Fuels Inflation and Rate Hike Fears 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
Asia Stocks Slip as Iran-Hormuz Tensions Lift Oil Prices, Dollar and Bond Yields 
Singapore GDP Grows 5.7% in Q2 2026 as AI-Driven Manufacturing Boosts Economy 
Asian Currencies Weaken as Stronger Dollar Weighs, Yen Supported by GPIF Repatriation Hopes 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
European Stocks Slip as Middle East Tensions and Hormuz Threat Rattle Markets 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
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 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
The U.S. dollar slipped slightly on Tuesday but remained on track for its biggest monthly gain since July 2025, driven by its safe-haven appeal during the ongoing U.S.-Israel war on Iran. The conflict, now stretching beyond a month, has sent oil prices sharply higher, raising global inflation concerns and threatening economic growth worldwide.
The U.S. Dollar Index fell 0.6% to 99.96 by late afternoon trading, yet the greenback was still positioned for a 2.4% advance in March. The pullback came as investors shifted toward riskier equities following reports that President Trump was open to ending military operations against Iran, even if the critical Strait of Hormuz remained closed. Iran's leadership also signaled willingness to negotiate a ceasefire given appropriate security guarantees.
Soaring oil prices, triggered by the Strait of Hormuz closure and resulting supply disruptions, have forced investors to rethink interest rate cut expectations globally. Higher-for-longer rate scenarios typically support a stronger dollar, which has also benefited from the United States' position as a net energy exporter. Federal Reserve Chair Jerome Powell acknowledged near-term inflation pressures but suggested the central bank would look beyond the oil supply shock, comments analysts characterized as relatively dovish compared to other global central banks. Several institutions, including those in Australia, Japan, the Eurozone, and the United Kingdom, are expected to raise benchmark rates amid the energy-driven inflation surge.
On the economic data front, U.S. consumer confidence edged up to 91.8 in March, topping forecasts, though inflation expectations among respondents hit their highest level since August 2025. The latest JOLTS report revealed 6.88 million job openings in February, slightly below estimates, with the hiring rate falling to its lowest point since April 2020. Meanwhile, Eurozone annual inflation climbed to an estimated 2.5% in March, up from 1.9% in February, with energy costs surging nearly 5%.
