Canadian Dollar Faces Pressure as Fed-BoC Policy Gap Widens 
Asian Stocks Fall as Surging Bond Yields Rattle Markets 
Germany’s 2026 Growth Outlook Strengthens on Fiscal Spending 
Oil Prices Fall on U.S.-Iran Hormuz Deal Hopes 
Dollar Holds Near Two-Month High as Yen Approaches 160 
US Comfortable With Canada Trade Standoff as Import Bans Loom 
RBI Uses $10 Billion Currency Swaps to Drain Excess Rupee Liquidity 
Gold Holds Near $4,275 as Rising Treasury Yields Fuel Fed Rate Hike Bets 
China Agrees to Buy 20 Million Tons of U.S. Coal 
Trump, Xi Focus on Trade and AI at White House Summit 
Fed’s Hammack Says Bond Yield Surge Is Not Driven by Inflation Fears 
U.S. Dollar Hits Two-Month High as Oil, Treasury Yields Surge 
US Stock Futures Fall as Treasury Yields Surge Ahead of Trump-Xi Summit 
Oil Prices Jump 3% as Houthi Attack Revives Supply Fears 
Japanese Yen Rebounds as Trump Flags Currency Weakness 
US 10-Year Treasury Yield at 6% Emerges as New Market Risk Threshold 
Add as a preferred source on Google
Asian currencies traded narrowly on Tuesday, while the U.S. dollar saw modest gains amid renewed trade tensions and global economic uncertainty. The dollar index rose 0.2% in Asian trading, recovering from prior losses, as risk appetite weakened due to geopolitical and economic concerns.
The Australian dollar led regional losses, with the AUD/USD pair falling 0.5%. Dovish signals from the Reserve Bank of Australia and weaker-than-expected Q1 data—including a sharp current account deficit—pressured the currency ahead of Wednesday’s GDP release. The RBA had already cut interest rates by 25 basis points in May, citing headwinds from global trade issues.
The Chinese yuan remained flat, with the USD/CNY holding around 7.1978. Offshore yuan edged down 0.1%, reversing Monday’s gains. Recent PMI data showed a contraction in China’s manufacturing sector, highlighting the impact of escalating U.S. tariffs. While a temporary tariff truce had been agreed in May, recent developments show talks stalling. U.S. President Donald Trump accused China of breaching the deal, while Beijing rejected the claim and criticized continued U.S. curbs on its chip industry.
Other Asian currencies also showed limited movement. The Japanese yen softened slightly, with the USD/JPY pair up 0.3%. The Singapore dollar and South Korean won each saw 0.2% increases against the dollar, with Korean markets partially closed for a presidential election. Meanwhile, the Indian rupee held steady ahead of a key Reserve Bank of India rate decision, where another 25 basis point cut is expected.
Overall, Asian forex markets remained cautious as traders weighed geopolitical risks, central bank actions, and the potential fallout from deteriorating U.S.-China relations. Currency volatility may rise if economic data continues to disappoint or trade tensions escalate further.
