Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
US Stock Futures Hold Steady as Soft Inflation Data Eases Fed Rate Hike Fears 
US Stock Futures Fall as Netflix Outlook, Chip Selloff and Iran Tensions Weigh on Markets 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Brazil Weighs IP Curbs, Patent Suspensions After New U.S. Tariffs 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
Asian Stocks Slide as Chip Selloff Deepens Ahead of TSMC Earnings 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
The Japanese yen strengthened on Monday as investors reacted to political uncertainty following Japan’s ruling coalition losing its majority in the upper house. With financial markets in Japan closed for the day, the yen served as a key sentiment barometer, firming to 148.32 per dollar and edging up against the euro at 172.64.
Prime Minister Shigeru Ishiba’s Liberal Democratic Party (LDP) secured only 47 of the 50 seats needed to retain control of the 248-seat upper house, raising fears of policy paralysis. Ishiba’s position has been further weakened after also losing control of the more powerful lower house in October. Although the LDP could potentially strike a partnership with the Democratic Party for the People (DPP), the political uncertainty is weighing on markets.
The yen’s move comes ahead of an August 1 deadline for critical tariff negotiations with U.S. President Donald Trump. Analysts warn that any resignation by Ishiba could prompt foreign investors to exit Japanese equities and the yen, increasing market volatility.
Japanese government bonds (JGBs) faced a sharp selloff last week, pushing 30-year yields to record highs and weakening the yen to multi-month lows. Meanwhile, the broader currency market saw the euro steady at $1.1632 and the pound at $1.1342, while the U.S. dollar index stood at 98.352.
Elsewhere, the New Zealand dollar dipped 0.18% to $0.5951 after Q2 inflation came in below expectations, prompting speculation of a rate cut next month. Bitcoin slipped 1% to $116,939, staying below its all-time high of $123,153 reached last week.
Global investors remain focused on Trump’s escalating tariff threats, especially toward the European Union, which could further unsettle financial markets.
