India PMI Rises as Services Offset Manufacturing Slowdown 
Gold Holds Near Two-Month High as Treasury Yields Fall 
China opens new Arctic trade route – but obstacles will prevent its wider use 
Gold Holds Above $4,500 as Dollar Weakens 
Trump Eyes 15% Tariff on Canadian Auto Imports in New Trade Deal 
Oil Prices Climb as US-Iran Hormuz Tensions Rattle Markets 
US Dollar Hits Three-Month Low as Treasury Yields Fall 
US Dollar Heads for Worst Week Since July as Fiscal Concerns Mount 
UK Budget Swings to Surprise £1.8 Billion Deficit in July 
Asian Stocks Rally as KOSPI, Nikkei Surge on Bond Market Relief 
Australia Unemployment Rate Hits 4.5% as Jobs Fall in July 
Fed Minutes Signal Rate Hikes Remain Possible as Inflation Risks Persist 
US Debt Tops $40 Trillion as Global Borrowing Costs Surge 
US Treasury Doubles Long-Term Bond Buybacks as Yields Surge 
Japan Trade Deficit Widens as Imports Surge on Energy and AI Demand 
South Korea Producer Prices Fall 0.4% in July 
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Most Asian currencies weakened on Wednesday as the U.S. dollar strengthened amid renewed geopolitical tensions in the Middle East, while diverging central bank policies continued to shape regional foreign exchange markets.
The greenback gained momentum after the Trump administration launched fresh strikes on Iran and tightened restrictions on Iranian oil exports following attacks on commercial vessels in the Strait of Hormuz. The escalation boosted demand for safe-haven assets, lifting the U.S. Dollar Index to its highest level in a week.
The Japanese yen remained under pressure, with USD/JPY climbing to around ¥162.46, close to a four-decade low. The pair has now advanced for four consecutive sessions, increasing speculation that Japanese authorities could intervene if volatility intensifies. Bank of Japan board member Toichiro Asada reiterated that clearer evidence of demand-driven inflation is needed before supporting additional interest-rate hikes, reinforcing expectations that Japan will normalize monetary policy only gradually. The wide interest-rate gap between the U.S. and Japan continues to weigh on the yen.
In contrast, the New Zealand dollar outperformed regional peers after the Reserve Bank of New Zealand raised its official cash rate by 25 basis points to 2.5%, matching market expectations. The central bank also signaled that further policy tightening may be required to bring inflation back to target. Following the decision, USD/NZD fell more than 0.5%, while the Australian dollar also edged higher, with USD/AUD slipping 0.1%.
Elsewhere in Asia, Malaysia’s ringgit weakened modestly ahead of Bank Negara Malaysia’s policy meeting on Thursday, where economists broadly expect interest rates to remain unchanged at 2.75%. Analysts believe recent measures encouraging the repatriation of overseas earnings could provide support for the ringgit once broader U.S. dollar strength fades.
The South Korean won also retreated as investors remained cautious after recent volatility in semiconductor stocks, despite a recovery in the KOSPI. Meanwhile, the Chinese yuan held relatively steady as the People’s Bank of China maintained firm daily reference rates. The Indian rupee, Thai baht, and Taiwan dollar also weakened modestly against the stronger U.S. dollar.
Investors are now focused on the Federal Reserve’s June meeting minutes, China’s June inflation data, and Bank Negara Malaysia’s upcoming policy decision for fresh signals on interest rates, the U.S. dollar, and the outlook for Asian currency markets.
