US Dollar Near Two-Month Low as Markets Await Inflation Data 
Oil Prices Rise as Hormuz Reopening Remains Uncertain 
Wall Street Slips as Oil Prices Surge 5% on Iran-Hormuz Uncertainty 
Singapore Raises 2026 GDP Growth Forecast to 4.5%-5.5% as AI Boom Fuels Economy 
Japan Executives Warn Weak Yen and Currency Volatility Threaten Economy 
Gold Price Hits Two-Month High as Investors Await US Inflation Data 
South Korean Won Leads Asian FX Losses as Dollar Rises 
Asian Stocks Mixed as RBA Holds Rates, Oil Risks Rise 
Yen Stabilizes After Intervention Slide as Australian Dollar Hits Eight-Week High 
BOJ Signals Faster Rate Hikes as Inflation Risks Raise September Move Odds 
Japan Posts First Current Account Deficit in 17 Months as Dividend Payments Surge 
Australian Shares Fall as Westpac Slides, Miners Gain Ahead of RBA Decision 
Asian Stocks Rise as Weak US Jobs Data Eases Fed Rate Hike Fears 
Gold Prices Rise as Fed Rate Hike Bets Ease 
Singapore Raises 2026 GDP Growth Forecast as AI Demand Fuels Economy 
Oil Prices Rise as US-Iran Talks Stall, Inflation Risks Grow 
Goldman Sachs Sees US Stock Buybacks Outpacing Equity Issuance as AI Funding Rises 
Asian currencies and the U.S. dollar traded in narrow ranges on Tuesday as investors stayed cautious ahead of key U.S. inflation data that could influence expectations for the Federal Reserve’s interest-rate outlook. The Australian dollar remained relatively firm after the Reserve Bank of Australia (RBA) kept borrowing costs unchanged.
The U.S. Dollar Index was little changed at 99.81 after gaining around 0.3% in the previous session. Currency markets are now focused on upcoming U.S. consumer price index (CPI) figures for clearer signals on inflation and future Fed policy.
The RBA maintained its cash rate at 4.35%, as widely anticipated, extending its policy pause while assessing persistent price pressures and softer economic conditions. Australian inflation eased to 3.8% in June but remained above the central bank’s 2%-3% target range.
Recent underlying inflation figures came in below expectations, easing pressure on policymakers to raise rates immediately. However, the RBA indicated that additional tightening remains possible if inflation risks intensify. Following the decision, the AUD/USD pair was broadly unchanged.
The Japanese yen also stabilized, with USD/JPY trading around 159.23 after the yen strengthened sharply in the previous session. The currency has already surrendered a significant portion of gains generated by joint U.S.-Japan intervention after it previously weakened to a 40-year low of 163.99 per dollar. Investors remain alert to the possibility of further intervention.
Elsewhere in Asian forex markets, USD/KRW slipped about 0.2%, while the Singapore dollar was largely flat. China’s onshore and offshore yuan showed limited movement, while USD/INR edged approximately 0.1% higher.
Attention is now shifting toward Wednesday’s U.S. CPI report, followed by producer price and retail sales data. Weak July U.S. payroll figures have already pressured the dollar and encouraged traders to reduce some bullish positions.
Meanwhile, rising oil prices could create additional challenges for Asian currencies, particularly in energy-importing economies. Fading expectations for a U.S.-Iran agreement have supported crude prices, potentially adding to inflation concerns and complicating the outlook for global interest rates and currency markets.
