Asian Stocks Sink as Apple Price Hikes Spark AI Valuation Fears, South Korea and Japan Lead Selloff 
Japan Signals Preference for Low Interest Rates as BOJ Policy Debate Intensifies 
Australia Jobs Growth Strengthens Rate Hike Outlook 
Asian Markets Rally as Micron and Qualcomm AI Outlook Lifts Global Tech Stocks 
Bank Regulation Rollbacks in the U.S. and UK Could Increase Financial Risks, Study Warns 
Iran Attack in Strait of Hormuz Pushes Oil Prices Higher 
Australian Household Spending Rebounds Strongly in May as Travel and Dining Drive Consumer Growth 
Oil Prices Rebound as Strait of Hormuz Tensions Return After Ship Attack Near Oman 
Gold Drops Below $4,000 as Strong US Dollar and Fed Rate Hike Expectations Pressure Bullion 
South Korea’s KOSPI Jumps Over 5% as Samsung, SK Hynix Rally on Micron Earnings Boost 
U.S. Dollar Reaches One-Year High as Tech Sell-Off and Fed Rate Hike Expectations Support Demand 
S&P Affirms Brazil’s BB Credit Rating with Stable Outlook Amid Fiscal Challenges 
South Korea’s KOSPI Plunges as Apple Price Hikes and OpenAI IPO Delay Shake AI Chip Stocks 
BOJ Hawk Signals Faster Interest Rate Hikes Amid Inflation Risks 
Asian Currencies Trade Mixed as Yen Hovers Near 40-Year Low, Dollar Holds Firm on Fed Outlook 
Morgan Stanley Sees Chinese Auto Market Recovery Gaining Momentum in Late Summer 
South Korea Remains MSCI Emerging Market Despite Reform Progress 
Global currency markets remained largely subdued on Friday, with most Asian currencies showing minimal movement as the U.S. dollar held firm. Investors continued to weigh geopolitical developments in the Middle East and their potential ripple effects on oil prices and global inflation.
The U.S. Dollar Index dipped slightly by 0.1% during Asian trading hours, pulling back after three consecutive sessions of gains. Dollar Index Futures mirrored this modest decline, reflecting cautious sentiment across markets.
A key driver of recent volatility was U.S. President Donald Trump's announcement that he would pause military strikes on Iran's energy infrastructure for 10 days, following a request from Tehran. Trump noted that negotiations with Iran were progressing positively. The move offered some relief to jittery financial markets, though traders remained alert to the possibility of sudden shifts in the situation.
Analysts at MUFG acknowledged the temporary calm but warned that risks remain tilted toward a prolonged conflict. They noted that Asian currencies most vulnerable to rising energy import costs — particularly the South Korean won and Japanese yen — face continued exposure should tensions escalate again. The yen edged slightly lower against the dollar, while the won was virtually unchanged.
China's yuan ticked marginally higher, and the Singapore dollar traded flat, reflecting the broader pattern of muted moves across the region. Meanwhile, the Indian rupee touched a fresh record low, briefly reaching 94.301 per dollar before recovering slightly. The Australian dollar outperformed regional peers, gaining 0.2% against the greenback.
Underpinning dollar strength is the persistent market expectation that U.S. interest rates will remain elevated for an extended period. Crude oil prices had surged near $120 per barrel at the peak of Middle East tensions, stoking inflation fears and reinforcing the case for a hawkish Federal Reserve stance — a dynamic that continues to pressure Asian foreign exchange markets.
