UK PM Burnham to Unveil Economic Vision at Labour Conference 
Dollar Holds Near Two-Month High as Yen Approaches 160 
Trump, Xi Focus on Trade and AI at White House Summit 
European Stocks Fall as Bond Yields and Geopolitical Risks Weigh 
Fed Unveils Stablecoin Rules Under GENIUS Act 
US Stock Futures Fall as Treasury Yields Surge Ahead of Trump-Xi Summit 
U.S. Dollar Hits Two-Month High as Oil, Treasury Yields Surge 
Asian Currencies Mixed as Dollar Holds Near Two-Month High 
Germany’s 2026 Growth Outlook Strengthens on Fiscal Spending 
Canadian Dollar Faces Pressure as Fed-BoC Policy Gap Widens 
Fed’s Hammack Says Bond Yield Surge Is Not Driven by Inflation Fears 
China Agrees to Buy 20 Million Tons of U.S. Coal 
Asian Stocks Fall as Surging Bond Yields Rattle Markets 
Oil Prices Fall on U.S.-Iran Hormuz Deal Hopes 
U.S. Treasury Yields Surge as 30-Year Hits 22-Year High 
Fed Unveils Stablecoin Rules Under GENIUS Act 
RBI Uses $10 Billion Currency Swaps to Drain Excess Rupee Liquidity 
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Asian currencies and the U.S. dollar weakened on Monday as markets awaited clarity on shifting U.S. trade policies under President Donald Trump. Investor sentiment remained cautious after Trump announced plans to send tariff letters to several countries at 12:00 p.m. ET on Monday, adding that BRICS-aligned nations would face an additional 10% tariff due to what he called anti-American actions.
The U.S. Dollar Index slipped 0.2% during Asian trading hours, while futures edged 0.1% lower. The uncertainty around the exact nature and timeline of the tariffs, expected to take effect on August 1, kept market participants on edge. Trump previously introduced a 10% base tariff in April, with potential increases up to 70%.
In currency markets, the South Korean won (USD/KRW) rose 0.4%, the Thai baht (USD/THB) jumped 0.7%, and the Malaysian ringgit (USD/MYR) gained 0.5%. Both the onshore Chinese yuan (USD/CNY) and offshore yuan (USD/CNH) moved up 0.1% and 0.2%, respectively. The Japanese yen (USD/JPY), Singapore dollar (USD/SGD), and Indian rupee (USD/INR) all edged 0.1% higher against the U.S. dollar.
Meanwhile, the Australian dollar (AUD/USD) dropped 0.5%, its third consecutive decline, amid rising expectations of a rate cut by the Reserve Bank of Australia (RBA) on Tuesday. Analysts anticipate a 25-basis-point reduction, marking the RBA's third cut this year as inflation slows and global economic uncertainty persists. ING analysts noted that while a dovish RBA may weigh on AUD cross-pairs, the AUD/USD pair remains primarily influenced by U.S. trade developments.
Investors are now closely watching the upcoming central bank moves and further trade policy updates for market direction.
