US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Port of Los Angeles Posts Record June Cargo Volume as Importers Rush Ahead of U.S. Tariffs 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
Asian Currencies Hold Steady as Middle East Tensions Offset Weaker US Dollar 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Gold Prices Slip as Oil Rally Fuels Inflation Fears, Strengthens Dollar 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Asian Stocks Slide as Chip Selloff Deepens Ahead of TSMC Earnings 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
The Japanese yen slipped to its weakest level in more than nine months in early Asian trading on Tuesday, pressured by a stronger U.S. dollar and fading expectations of an imminent Federal Reserve rate cut. The dollar rose as much as 0.1% to 155.29 yen, marking the Japanese currency’s softest point since February 4. Investors are now turning their attention to the delayed U.S. September payrolls report due Thursday, which could further shape market sentiment.
Japan’s recent currency moves sparked concern from Finance Minister Satsuki Katayama, who noted that policymakers are “alarmed” by the yen’s rapid, one-sided decline. Her comments underscore growing anxiety about the economic fallout of a weak yen, which raises import costs and strains household spending.
Prime Minister Sanae Takaichi is scheduled to meet Bank of Japan Governor Kazuo Ueda later on Tuesday. Takaichi, known for supporting aggressive fiscal stimulus and ultra-loose monetary policy, has appointed like-minded policymakers to key roles—an approach that typically weighs on the yen’s value. Meanwhile, market pricing through the CME FedWatch tool shows the likelihood of a 25-basis-point Fed rate cut in December has dropped to 43%, down sharply from 62% a week ago.
The dollar index also strengthened, rising 0.2% to 99.545 and snapping a four-day slide. Analysts at ING noted that even if the Fed pauses in December, markets expect any hold to be temporary, with upcoming economic data—particularly employment indicators—playing a decisive role.
Fed officials added to the cautious tone on Monday. Governor Christopher Waller highlighted a growing trend of U.S. companies preparing for layoffs amid concerns about slowing demand and potential AI-driven productivity shifts. Vice Chair Philip Jefferson described the labor market as “sluggish,” citing employer hesitation to expand hiring.
Risk sentiment weakened across global markets, dragging U.S. equities lower. Treasury yields were mixed, with the two-year note easing slightly to 3.6039% and the 10-year yield edging up to 4.1366%. Major currencies also softened against the dollar, with the euro trading at $1.1594, sterling at $1.3149, and the Australian dollar at $0.6493, while the New Zealand dollar held steady at $0.56535.
