RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
Dollar Weakens Ahead of Expected Federal Reserve Rate Cut 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
Fed Meeting Sparks Division as Markets Brace for Possible Rate Cut 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
European Oil & Gas Stocks Face 2026 With Cautious Outlook Amid Valuation Pressure 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
U.S. Stocks Rise as Cooler Inflation Boosts Hopes for Fed Rate Cut 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
Asian currencies strengthened on Wednesday as the U.S. dollar weakened amid uncertainty over President Donald Trump’s proposed tax reform and heightened caution during the ongoing G7 finance ministers' meeting, which often addresses foreign exchange matters.
The U.S. Dollar Index dropped 0.3%, while Dollar Index Futures declined 0.4% during Asian trading hours. The dip followed Trump’s push for congressional Republicans to support a sweeping tax cut bill, though key lawmakers remain unconvinced. If passed, the bill could significantly expand the U.S. fiscal deficit. Last week, Moody’s downgraded the U.S. credit rating due to rising national debt.
Investors are closely watching the G7 meeting in Canada, where any changes in language around FX policy could impact dollar sentiment. Analysts at ING noted that minor tweaks in the final communique could trigger market reactions.
Meanwhile, several Federal Reserve officials cautioned that persistent trade tariffs could elevate inflation, possibly delaying interest rate cuts.
In Asia, the South Korean won led gains, with the USD/KRW pair dropping 0.5%, followed by the Japanese yen, with USD/JPY down 0.4%. Japan’s trade balance unexpectedly shrank in April, reflecting weak exports due to U.S. tariffs and a strong yen.
The Chinese yuan remained steady despite escalating tensions. Beijing opposed new U.S. restrictions targeting Huawei chips, warning that such actions could jeopardize the fragile 90-day trade truce.
Elsewhere, the Australian dollar rebounded, with AUD/USD up 0.5% after Tuesday’s 25 basis point rate cut by the Reserve Bank of Australia. The Singapore dollar (USD/SGD) slipped 0.2%, while the Indian rupee (USD/INR) held steady.
The combination of a weaker dollar, trade concerns, and central bank signals helped lift sentiment for Asia’s emerging market currencies.
