Australia Budget Deficit Narrows to A$22.3 Billion on Stronger Tax Revenue 
Asian Currencies Weaken as Dollar, Oil Prices Rise 
Gold Holds Near Seven-Week Low as Fed Rate Hike Bets Rise 
Asian Currencies Mixed as Yen Weakens, RBA Hike Looms 
US Stocks Face Jobs, Inflation Test as Fed Rate Hike Bets Rise 
Oil Prices Jump Nearly 3% as Iran Holds Firm on Hormuz Conditions 
Asian Stocks Fall as Bond Yields and Oil Prices Surge 
BlackRock’s Rick Rieder Favors Bonds Over Stocks as Treasury Yields Surge 
Oil Prices Rise as Iran Holds Firm on Strait of Hormuz Deal 
Hong Kong Home Prices Stabilize in August After July Decline 
U.S. Stock Futures Fall as Iran, Oil and AI Risks Rattle Markets 
South Korea Tax Windfall Could Top 50 Trillion Won on Chip Boom 
U.S. Stock Futures Steady as AI, Rate Concerns Weigh 
UK Housebuilder Stocks Surge on New First-Time Buyer Loan Scheme 
Europe’s AI Data Centre Boom Strengthens Case for Nuclear Power 
RBA Set for September Rate Hike as Inflation Stays High 
Gold Plunges 4% as Treasury Yields Surge and Fed Rate Hike Bets Rise 
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Asian currencies edged higher on Friday as the U.S. dollar weakened following softer-than-expected inflation data, which reduced expectations for a near-term Federal Reserve interest-rate hike. Gains across regional currencies remained limited, however, as Middle East tensions and elevated oil prices kept investors cautious.
The U.S. Dollar Index slipped 0.1% to 99.87 after closing slightly lower in the previous session. The decline followed U.S. producer price data showing prices were unexpectedly unchanged in July, reinforcing signs that inflationary pressures are easing.
The latest producer price figures came after July consumer inflation data showed headline CPI rising 3.4% year over year, while core CPI moderated to 2.5%. Expectations for a September Fed rate hike subsequently weakened, with markets pricing in roughly a 35% probability, compared with 55% a week earlier, according to CME FedWatch.
Lower U.S. interest-rate expectations provided some support to Asian currencies, but geopolitical risks continued to limit gains. U.S. Defense Secretary Pete Hegseth said the military could maintain a naval blockade of Iranian ports indefinitely as Washington keeps economic pressure on Tehran amid stalled peace negotiations.
Disruptions to shipping through the Strait of Hormuz, a crucial route for global oil and liquefied natural gas supplies, have also supported energy prices. Oil was on course for a roughly 4% weekly gain, raising renewed inflation concerns.
The Japanese yen strengthened slightly, with USD/JPY falling around 0.1% to 159.34. However, the yen remained on track for a weekly decline of about 1% after surrendering some gains generated by U.S.-Japan intervention in late July and early August. Traders remain alert to possible additional intervention if USD/JPY moves above 160.
Expectations for a September Bank of Japan rate hike have increased, although sustained yen strength may depend on a more hawkish BOJ policy stance.
Elsewhere in Asian forex markets, USD/KRW slipped 0.2% as the South Korean won strengthened, while USD/CNY was largely unchanged. USD/INR and USD/SGD moved slightly lower, while the Australian dollar gained around 0.1% against the greenback.
