Indian Stocks Fall as RBI Hikes Rates to 5.50% 
Ukraine Faces $56 Billion Budget Gap as War Costs Soar 
Gold Prices Slip as Strong Dollar and High Treasury Yields Weigh 
Japan Real Wages Rise 1.5%, Supporting BOJ Rate Hikes 
Dollar Retreats From 18-Month High as Euro Rebounds 
India-US Trade Deal Talks Hit Plateau, Sitharaman Says 
Australia Consumer Confidence Plunges as RBA Rate Hike Hits Households 
World Bank Raises South Asia Growth Forecast to 6.9% 
European Stocks Fall as Oil Rises Ahead of Fed Minutes 
Thailand Plans Dual-Class Shares to Revive IPO Market 
Trump Plans Diesel Tax Relief as Fuel Prices Hit Record Highs 
Trump Opens Tax-Exempt Dyed Diesel Access as Fuel Prices Surge 
UK House Prices Flat in September as Mortgage Rates Weigh 
China Shuts 670 Banks as Bitcoin Eyes Financial Risks 
Oil Prices Fall as Middle East Exports Recover, G7 Eases Supply Fears 
Oil Prices Rise as Hormuz Attacks Fuel Supply Fears 
German Industrial Orders Plunge 10.6% in August 
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Asian currencies traded mixed on Wednesday as the U.S. dollar remained near recent highs, while the Japanese yen weakened toward 158 per dollar amid uncertainty over the Bank of Japan’s policy outlook and renewed concerns about government spending.
The U.S. Dollar Index gained 0.2% to around 102.03, while USD/JPY rose 0.2% to 158.38. EUR/USD slipped 0.2% to 1.124 and GBP/USD declined 0.2% to 1.325. The Australian dollar traded near $0.6973, while the New Zealand dollar stood at $0.5610.
Higher oil prices and U.S. Treasury yields added pressure across Asian currencies. Oil climbed as much as 1% to around $101.50 a barrel after Iran intensified tanker attacks in the Strait of Hormuz. The benchmark 10-year Treasury yield increased three basis points to roughly 5.31%.
Investors are now awaiting minutes from the Federal Reserve’s September 15-16 meeting, when policymakers raised interest rates to curb inflation. Fed officials Christopher Waller, Neel Kashkari and Alberto Musalem are also scheduled to speak.
Expectations for an October Fed rate hike have declined following softer U.S. inflation and employment data. CME FedWatch showed the probability of at least a 25-basis-point October increase falling to 20.5% from about 51% a week earlier. However, markets still see an 84.5% chance of a December hike.
In Japan, new BOJ board member Ayano Sato said she supports raising interest rates in several stages. Reports also indicated the central bank could signal that underlying inflation has broadly reached its 2% target, strengthening the case for further tightening.
The yen also faced pressure as Japan considers a second supplementary budget, reviving concerns over fiscal spending.
Meanwhile, USD/INR rose 0.2% to 96.61 ahead of the Reserve Bank of India’s policy decision. The RBI is widely expected to raise its benchmark rate by 25 basis points to 5.50%, its first increase since February 2023.
Elsewhere, USD/CNH edged up to 6.7043, USD/CNY held at 6.7046, USD/KRW slipped to 1,337.85 and USD/SGD rose to 1.2788. The euro remained under pressure amid renewed fiscal concerns in France and political uncertainty in Spain.
