Japan Private-Sector Growth Slows as Domestic Demand Weakens 
Gold Prices Fall as Treasury Yields Rise on Fed Rate Hike Bets 
RBI Uses $10 Billion Currency Swaps to Drain Excess Rupee Liquidity 
Asian Currencies Mixed as Dollar Holds Near Two-Month High 
US Stock Futures Fall as Treasury Yields Surge Ahead of Trump-Xi Summit 
Wall Street Ends Flat as Oil, Treasury Yields and Fed Jitters Rattle Markets 
Soybean Futures Slip as Traders Await Trump-Xi Trade Signals 
Australia Unemployment Hits Five-Year High Despite Strong Jobs Growth 
US 10-Year Treasury Yield at 6% Emerges as New Market Risk Threshold 
US, China Extend Trade Truce to Jan. 10 Ahead of Trump-Xi Summit 
Trump, Xi Focus on Trade and AI at White House Summit 
Dollar Holds Near Two-Month High as Yen Approaches 160 
Russian Envoy Dmitriev Heads to US for Ukraine Talks 
South Korea, US Discuss Warship Building Cooperation 
Asian Stocks Fall as Surging Bond Yields Rattle Markets 
Oil Prices Surge as U.S.-Iran Diplomacy Hopes Fade 
Fed Unveils Stablecoin Rules Under GENIUS Act 
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Asian currencies traded mostly flat on Wednesday after posting strong gains in the previous session, as higher-than-expected U.S. inflation data strengthened the U.S. dollar and pushed Treasury yields higher. Investors also reduced expectations for Federal Reserve interest rate cuts, increasing pressure on regional currencies.
The U.S. Dollar Index remained near a one-week high during Asian trading hours after climbing 0.4% on Tuesday. Market sentiment shifted after fresh data showed U.S. consumer prices rose 3.8% year-over-year in April, marking the fastest pace of inflation since May 2023. The reading came in above analyst forecasts, reinforcing concerns that the Federal Reserve could maintain elevated interest rates for a longer period.
Following the inflation report, traders largely ruled out the possibility of a Fed rate cut in 2026, while expectations for another rate hike increased slightly. Rising Treasury yields also supported the dollar’s strength against major Asian currencies.
The Japanese yen weakened slightly, with the USD/JPY pair rising 0.1% after gaining 0.3% in the previous session. The South Korean won also stabilized after a sharp rally, while the Indian rupee hovered near record lows against the dollar after USD/INR touched 95.7375 in the prior session.
Meanwhile, the Singapore dollar and Australian dollar traded in narrow ranges as investors remained cautious ahead of key geopolitical developments.
The Chinese yuan stayed near a three-year low against the dollar, although it continued to outperform several regional peers. Investors are closely monitoring talks between former U.S. President Donald Trump and Chinese President Xi Jinping in Beijing from May 13 to May 15. Discussions are expected to focus on trade relations, tariffs, artificial intelligence, rare earth exports, and the ongoing Iran conflict.
Global market sentiment also remained fragile due to escalating Middle East tensions. Concerns over disruptions in oil shipments through the Strait of Hormuz kept crude oil prices above $100 per barrel, adding to inflation worries worldwide and further supporting the U.S. dollar.
