US Stock Futures Rise as Trump’s Iran Talks Boost Market Sentiment Ahead of Key Earnings 
Japanese Yen Rallies as Intervention Hopes and BOJ Outlook Weigh on USD/JPY 
Trump Says Iran Talks to Begin as Strait of Hormuz Deal Nears, Oil Prices Fall 
US Signals More Joint Yen Intervention With Japan if Currency Volatility Continues 
China Defends Industrial Policy Ahead of Key U.S. and EU Trade Talks 
India Plans Tax Reforms to Boost Foreign Investment and Manufacturing 
Australia Job Ads Rise in July, Signaling Strong Labor Market Despite High Interest Rates 
Asian Stocks Rise as AI Optimism Returns, Australia Hits Record High Ahead of RBI Decision 
Oil Prices Rebound as U.S.-Iran Talk Uncertainty Keeps Markets on Edge 
Gulf Shipping Traffic Steady as U.S.-Iran Talks Remain Uncertain 
Gold Price Holds Above $4,050 as Fed Rate Outlook, Middle East Tensions Keep Markets on Edge 
RBI Holds Repo Rate at 5.25% as Inflation Risks and Global Uncertainty Persist 
Asian Stocks Slide as AI Selloff Hits South Korea, Oil Prices Drop on Iran Talks 
Oil Prices Extend Three-Day Decline as Hopes Rise for U.S.-Iran Strait of Hormuz Deal 
Oil Prices Drop Nearly 5% as Trump Delays Iran Strike, Markets Eye Strait of Hormuz Deal 
Japan Economy Minister Downplays Inflation Risks Despite BOJ Warning 
Asian currencies strengthened on Wednesday as the U.S. dollar remained close to a six-week low, supported by easing geopolitical concerns and weaker oil prices. Investors also reacted to the Reserve Bank of India’s (RBI) decision to keep interest rates unchanged, a move that was widely anticipated by markets.
The U.S. Dollar Index hovered around 99.80 after slipping to its lowest level in roughly six weeks. The dollar weakened as optimism over renewed U.S.-Iran diplomatic efforts reduced concerns about Middle East tensions, pushing crude oil prices lower and improving sentiment toward regional currencies.
The RBI left its benchmark repo rate unchanged at 5.25%, with all six members of the Monetary Policy Committee voting unanimously to maintain the current policy stance. The central bank cited rising food and fuel prices, global uncertainty, and resilient domestic economic growth as key reasons for holding rates steady while retaining its neutral outlook.
Following the decision, the Indian rupee extended its recent gains, with the USD/INR pair falling 0.3% to 95.06. The currency has recovered nearly 2% from recent lows, benefiting from a sharp decline in Brent crude prices over the past two sessions. Lower oil prices are generally supportive for India, one of the world’s largest crude importers.
The Japanese yen also remained firm, with USD/JPY slipping 0.2% to around 157.5. The currency continued to draw support after coordinated intervention by Japanese and U.S. authorities last week, marking the first joint action of its kind in decades. U.S. Treasury Secretary Scott Bessent reiterated Washington’s commitment to maintaining orderly currency markets.
Elsewhere in Asia, the South Korean won and Singapore dollar posted modest gains against the U.S. dollar, while China’s yuan strengthened slightly despite data showing the country’s services sector expanded at its slowest pace in 10 months during July. The Australian dollar also edged higher.
Looking ahead, investors are closely watching upcoming U.S. non-farm payrolls data, which could influence expectations for the Federal Reserve’s next interest rate decision and determine the near-term direction of the U.S. dollar and global currency markets.
