Japan, U.S. Discuss Yen Weakness as Currency Intervention Concerns Grow 
U.S.-Iran Diplomacy Helps Drive Gasoline Prices Down 15% From May Highs 
China’s AI Manufacturing Boom Masks Weak Consumer Economy, Citi Says 
Asian Stocks Slip as Oil Rebounds Amid Fed Rate Hike Fears 
Japan Manufacturing Growth Accelerates in June as Orders Surge Despite Iran War Cost Pressures 
US Dollar Hits One-Year High as Hawkish Fed Outlook Overshadows Middle East Developments 
Gold Prices Mixed as Stronger Dollar Offsets Safe-Haven Demand Amid U.S.-Iran Peace Talks 
Japan Keeps Markets Guessing as Yen Nears 40-Year Low, Raising Intervention Risks 
Canada Imposes 10% Tariff on Canned Vegetable Imports to Protect Domestic Industry 
Russian Stocks End Flat as MOEX Index Hits New 52-Week Low 
France Faces Long Road to Economic Rebalancing as Weak Demand and High Rates Weigh, Says Citi 
Yen Near 40-Year Low as USD/JPY Approaches Key 162 Level, Raising Intervention Concerns 
New Zealand Fast-Tracks Gold Mining as Industry Revival Gains Momentum 
Italy’s Economy Outpaces Eurozone Peers as Investment Spending Fuels Growth 
Canada, British Columbia Launch $5 Billion Infrastructure Partnership to Boost Housing, Transit, and Healthcare 
Wall Street Ends Mixed as Alphabet Slumps, Middle East Developments and Fed Outlook Weigh on Markets 
Asian Stocks Surge as Oil Prices Fall and Strong US Dollar Weighs on Markets 
The yuan weakened on Wednesday as escalating U.S.-China trade tensions rattled Chinese markets post-Lunar New Year. The dollar surged over 0.5% against the yuan to 7.2856, despite the People's Bank of China (PBOC) setting a stronger-than-expected midpoint rate. Investors watched the fixing closely for signs of Beijing's stance on currency devaluation in response to U.S. tariffs.
China swiftly retaliated against new U.S. tariffs imposed by President Donald Trump, with Trump stating he has no urgency to engage in talks with Chinese President Xi Jinping. Analysts predict China may allow further yuan depreciation to counteract the economic impact of tariffs, signaling prolonged trade friction.
Meanwhile, the offshore yuan hovered at 7.2892 per dollar after plunging to a record low of 7.3765 earlier in the week. The Australian dollar, often a proxy for the yuan, edged lower to $0.6247, while the New Zealand dollar traded at $0.5653.
The yen was a key mover, rising over 0.5% to 153.47 per dollar, its highest in over a month. Japan’s inflation-adjusted real wages grew 0.6% in December, fueling speculation of further Bank of Japan (BOJ) rate hikes. Traders have priced in over 30 basis points of tightening by year-end.
Elsewhere, the Canadian dollar rebounded from its 22-year low, standing at C$1.4331, while the Mexican peso steadied at 20.4840 per dollar. The euro climbed back above $1.02, last trading at $1.0374, and sterling gained to $1.2484. The dollar index slipped 0.07% to 107.97.
Despite trade war tensions, market sentiment remained resilient, with optimism stemming from delayed U.S. tariffs on some countries following negotiations.
