China Sets 1.25% Overnight Reverse Repo Rate Below Market Expectations 
Gold Price Hits Annual Low as Fed Rate Hike Bets and Sticky Inflation Weigh on Bullion 
Oil Prices Rise as US-Iran Tensions Threaten Strait of Hormuz Oil Shipments 
Asian Currencies Stay Range-Bound as Investors Eye China Data, RBNZ Outlook and U.S.-Iran Ceasefire 
RBA Minutes Signal Australia Central Bank Remains Ready to Raise Interest Rates if Inflation Persists 
US Stock Futures Steady as Investors Await Payrolls Data and Monitor Iran Tensions 
China Expands Export Controls, Adds 20 Japanese Companies to Restricted List 
Canada Grants C$7 Million to Greenland Molybdenum Mine to Strengthen Critical Minerals Supply 
Asian Stocks End Strong Quarter as Dollar Surges, Yen Hits 40-Year Low Ahead of US Jobs Data 
Trump Urges Gasoline Retailers to Cut Prices to $2.50 Per Gallon, Warns of Legal Action 
Trump Threatens 100% Tariffs on Countries Imposing Digital Services Taxes on U.S. Tech Firms 
Asian Stocks Slip as US-Iran Ceasefire Hopes Lift Oil, Dollar Strength Persists 
China Factory PMI Seen Returning to Growth in June as AI Export Demand Supports Economy 
World Bank Approves $1.1 Billion Emergency Funding for Bangladesh Amid Food and Energy Price Pressures 
Argentina Economy Shrinks 1.5% in April, Recovery Under Milei Loses Momentum 
Dollar Slips Ahead of Key U.S. Jobs Data as Fed Rate Outlook, ECB, and Iran Talks Shape Forex Markets 
Gold Price Ends Lower for Fourth Week Despite Rebound as Fed Rate Hike Bets Strengthen 
Asian currencies weakened on Friday as stronger-than-expected U.S. economic data pushed the dollar higher and reinforced market expectations that the Federal Reserve could maintain a hawkish monetary policy stance through 2026. The Indian rupee fell to a fresh record low against the U.S. dollar, while other major Asian currencies also posted weekly losses.
The U.S. Dollar Index gained 0.2% during Asian trading hours, marking its fifth consecutive daily advance and putting it on track for its biggest weekly rise in over two months. Investors reacted to a series of solid U.S. economic indicators, including April retail sales data, which showed a 0.5% increase, in line with market forecasts. Weekly jobless claims also remained low, signaling continued strength in the U.S. labor market. Meanwhile, import prices surged 1.9%, driven by rising fuel costs.
Recent inflation reports in the United States also came in above expectations, further reducing hopes for Federal Reserve rate cuts this year. According to CME FedWatch data, the probability of a 25-basis-point Fed rate hike in December climbed to nearly 40%, compared to 22% last week.
The Japanese yen weakened slightly, with the USD/JPY pair rising 0.1% and heading for a 1.2% weekly gain. The South Korean won also declined, with USD/KRW advancing 0.3% for the day and 2.5% for the week. The Australian dollar dropped 0.5%, while the Singapore dollar remained under pressure as USD/SGD moved higher.
Attention also remained on the ongoing Trump-Xi summit in Beijing. Chinese President Xi Jinping said progress had been made in trade negotiations with U.S. President Donald Trump, although concerns over Taiwan and broader geopolitical tensions continued to weigh on investor sentiment. Markets showed limited optimism after the first day of talks ended without major trade agreements or policy announcements.
The Indian rupee remained one of the weakest performers in Asia, with USD/INR climbing to a record 95.96. Rising crude oil prices, foreign capital outflows, and concerns over India’s growing import bill added pressure to the currency. Analysts noted that India remains highly vulnerable to energy price shocks due to its heavy reliance on oil imports, especially amid disruptions in the Strait of Hormuz.
Currency analysts at MUFG said they remain cautious on the rupee outlook, warning that the INR could continue underperforming against both G10 and Asian currencies even if geopolitical tensions ease.
