China Home Prices Fall Again in June Despite Slower Pace of Decline 
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 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Asian Stocks Slide as Oil Surge, U.S.-Iran Tensions and Fed Rate Bets Weigh on Markets 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Asian Stocks Slide as Chip Selloff Deepens Ahead of TSMC Earnings 
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 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
The U.S. dollar began 2026 on a soft note, extending the weakness it showed throughout much of 2025, as currency markets continue to adjust to narrowing interest rate differentials between the United States and other major economies. Investors remain cautious ahead of key economic data and central bank developments that could shape the outlook for global interest rates this year.
After posting its sharpest annual decline in eight years in 2025, the dollar index hovered near 98.24 in early Asian trading. Last year’s drop was driven by U.S. interest rate cuts, uncertainty surrounding trade policy, and growing concerns about the Federal Reserve’s independence. As these factors persist into 2026, pressure on the greenback remains evident.
The euro held steady around $1.1752 after surging 13.5% in 2025, its strongest yearly gain since 2017. Sterling also remained firm near $1.3474, following a 7.7% rise last year. Both currencies benefited from improving sentiment outside the United States and the fading pace of rate cuts by other central banks, which reduced the dollar’s yield advantage.
The Japanese yen stabilized near 156.74 per dollar, close to a 10-month low that previously triggered intervention concerns from Japanese authorities. Although verbal warnings from Tokyo helped ease fears late last year, traders remain alert, especially as upcoming economic data could influence the Bank of Japan’s policy direction. With markets in Japan and China closed, trading volumes in Asia were subdued.
Looking ahead, investors are closely watching U.S. labour market data, including payrolls and jobless claims, for signals on where interest rates may head in 2026. Attention is also focused on who President Donald Trump will nominate as the next Federal Reserve Chair when Jerome Powell’s term ends in May. Markets expect a more dovish stance, with traders currently pricing in two U.S. rate cuts this year.
Meanwhile, commodity-linked currencies showed resilience. The Australian dollar edged higher near $0.6680 after its strongest annual performance since 2020, while the New Zealand dollar held steady around $0.5755, snapping a three-year losing streak in 2025.
