Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
Singapore GDP Grows 5.7% in Q2 2026 as AI-Driven Manufacturing Boosts Economy 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
South Korea’s KOSPI Triggers Trading Curb as AI Chip Stock Selloff Deepens 
European Stocks Slip as Middle East Tensions and Hormuz Threat Rattle Markets 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
US Stock Futures Hold Steady as Soft Inflation Data Eases Fed Rate Hike Fears 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
The Japanese yen hovered near a two-week low on Wednesday after reports that Prime Minister Sanae Takaichi expressed reservations about further interest rate hikes during a recent meeting with Bank of Japan Governor Kazuo Ueda. The news fueled uncertainty over Japan’s monetary policy outlook, adding pressure to the currency in global forex markets.
According to local media, Takaichi raised concerns about additional rate increases, signaling potential friction between the government and the central bank. If confirmed, the development could complicate the Bank of Japan’s gradual rate normalization strategy and reignite fears that policymakers may favor prolonged low interest rates and increased fiscal spending. Analysts warn that such a stance could weaken the yen further and unsettle currency markets.
The yen fell 0.8% overnight to 156.28 per dollar before stabilizing around 155.88. Market strategists noted that coordinated intervention with the United States may help prevent the yen from breaching the key 160 level, which traders view as a psychological threshold. Meanwhile, reports that U.S.-led “rate checks” in January supported the yen have raised questions about Japan’s long-term commitment to defending its currency.
In broader foreign exchange trading, the U.S. dollar faced pressure from a steadily appreciating Chinese yuan. The offshore yuan held near 6.8778 per dollar after reaching its strongest level in almost three years. The currency has gained nearly 7% over the past ten months, supported by robust exports and expectations of reduced U.S.-China trade tensions following a U.S. Supreme Court ruling that struck down several Trump-era tariffs.
Elsewhere, the Australian dollar climbed 0.3% to $0.7074 after stronger inflation data increased the likelihood of rate hikes, making it the session’s top performer. The euro traded at $1.1776, sterling held at $1.35, and the New Zealand dollar edged up to $0.5971 as global investors monitored U.S. policy signals and Asian currency movements.
