Asian Stocks Rise as Investors Brace for Fed Rate Decision 
Dollar Rises as Fed Hike Bets Weigh on Asian Currencies 
Oil Prices Surge as Houthi Attacks Raise Saudi Supply Fears 
Vietnam, U.S. Firms Plan 29 Deals Across Energy, Tech and Aviation 
China Home Prices Fall Again as Property Slump Drags on Growth 
Asian Bank Stocks Slide as BofA Warning and Rising Yields Hit Sentiment 
China Industrial Output Beats Forecasts as Exports Support Growth 
Gold Prices Fall as Hot U.S. Inflation Boosts Fed Rate Hike Bets 
UK Wage Growth Slows as BoE Rate Decision Looms 
Japanese Yen Retreats as Dollar Rises Ahead of Fed, BOJ Rate Decisions 
US Futures Fall as Fed Meeting, Oil Surge Rattle Markets 
Asian Tech Stocks Slide as AI Concerns and Rising Bond Yields Hit Chipmakers 
Asian Stocks Fall as AI Fears and Oil Surge Hit Markets 
US Stock Futures Rise as Markets Brace for Fed Rate Hike 
Saudi Arabia Raises Security Alerts as Houthi Attacks Threaten Oil Routes 
China’s Slower Loan Growth Becomes ‘New Normal’ as Credit Demand Weakens 
BOJ Flags Import Costs and Yen Shocks as Persistent Inflation Risks 
Add as a preferred source on Google
The U.S. dollar weakened on Wednesday after retreating from a two-week high as weaker-than-expected U.S. inflation data reduced expectations that the Federal Reserve will raise interest rates in the near term. While easing price pressures boosted risk sentiment across currency markets, rising oil prices linked to escalating tensions in the Middle East continued to fuel concerns over future inflation.
The dollar slipped 0.1% against the Japanese yen to 162.08. Meanwhile, the euro climbed 0.1% to $1.1433, and the British pound also gained 0.1% to trade at $1.3401. Commodity-linked currencies remained firm, with the New Zealand dollar hovering near a one-month high at $0.5819, while the Australian dollar held steady at $0.6983.
The U.S. Dollar Index, which tracks the greenback against six major currencies, eased to 100.81 after falling 0.35% in the previous session, marking its largest daily decline in nearly two weeks.
Fresh economic data showed U.S. consumer inflation slowed to 3.5% year over year in June, while the headline Consumer Price Index fell 0.4% from the previous month, the first monthly decline since April 2020 as energy prices eased. The softer inflation report pushed U.S. Treasury yields lower, with two-year yields dropping nine basis points from a 16-month high.
According to OCBC FX strategist Sim Moh Siong, the weaker inflation reading gives the Federal Reserve greater flexibility to keep interest rates unchanged for longer. He added that although the bank still expects modest U.S. dollar strength by year-end, near-term gains may remain limited without new market catalysts.
Following the inflation report, traders sharply reduced expectations for a July Fed rate hike, with CME Fed funds futures indicating the probability dropped to just 16%.
However, Federal Reserve Chair Kevin Warsh maintained a cautious stance during testimony before the House Financial Services Committee, stressing that the central bank has “no tolerance” for persistently high inflation. At the same time, renewed U.S. military action against Iran and President Donald Trump's reinstatement of a naval blockade on Iranian ports pushed oil prices to one-month highs, keeping inflation risks firmly on investors' radar.
Markets are now closely watching upcoming U.S. producer price data for additional clues on the Federal Reserve’s next policy move.
