Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
US Stock Futures Hold Steady as Soft Inflation Data Eases Fed Rate Hike Fears 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
Asian Currencies Hold Steady as Middle East Tensions Offset Weaker US Dollar 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
The U.S. dollar index declined on Monday, pulling back 0.4% to 99.97 as markets paused following a recent greenback rally. The euro climbed to $1.1473 against the dollar, while the British pound rose to $1.3278, reflecting broad softness in the currency amid growing global uncertainty.
Investor attention this week is firmly fixed on a series of high-stakes monetary policy meetings, with the Federal Reserve, European Central Bank, Bank of Japan, and Bank of England all scheduled to announce their latest interest rate decisions. These central bank gatherings are unfolding against a volatile geopolitical backdrop shaped by the ongoing war in Iran, which has sent shockwaves through global energy markets.
Since fighting broke out in the Middle East, oil prices have surged past the $100-per-barrel threshold, with both Brent crude and West Texas Intermediate futures remaining elevated despite some intraday pullbacks. The conflict has severely disrupted oil flows through the Strait of Hormuz — a critical chokepoint through which approximately one-fifth of the world's oil supply passes — squeezing energy supplies across Europe and Asia.
The threat of renewed inflation stemming from rising energy costs has prompted speculation that the Fed and its global counterparts may reconsider rate hike strategies. Higher interest rates typically attract foreign capital, which could strengthen the dollar over time. Sentiment toward the greenback, previously bearish, shifted notably after the conflict began.
U.S. President Donald Trump has been pushing allies, including NATO member nations, to join a naval coalition aimed at reopening the Strait of Hormuz. He also warned China that a planned April summit with President Xi Jinping could be canceled unless Beijing leverages its influence to help unblock the waterway. Reports indicate that Chinese-bound tankers have been permitted passage while others faced attacks.
Analysts at ING noted that the lack of progress over the weekend suggests a prolonged conflict, adding further uncertainty to already jittery currency and commodity markets.
