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 
Canadian Dollar Faces Pressure as Fed-BoC Policy Gap Widens 
Gold Prices Fall as Treasury Yields Rise on Fed Rate Hike Bets 
Trump, Xi Focus on Trade and AI at White House Summit 
UK PM Burnham to Unveil Economic Vision at Labour Conference 
China Agrees to Buy 20 Million Tons of U.S. Coal 
Dollar Holds Near Two-Month High as Yen Approaches 160 
Japanese Yen Rebounds as Trump Flags Currency Weakness 
US Stock Futures Fall as Treasury Yields Surge Ahead of Trump-Xi Summit 
Soybean Futures Slip as Traders Await Trump-Xi Trade Signals 
US Comfortable With Canada Trade Standoff as Import Bans Loom 
Gold Holds Near $4,275 as Rising Treasury Yields Fuel Fed Rate Hike Bets 
RBI Uses $10 Billion Currency Swaps to Drain Excess Rupee Liquidity 
Oil Prices Jump 3% as Houthi Attack Revives Supply Fears 
Dollar Falls as Oil Eases, Yen Jumps on Intervention Signals 
Japanese Bank Stocks Surge as Bond Yields Fuel Rate Hike Bets 
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The U.S. dollar weakened on Wednesday as investors embraced risk following a fragile ceasefire between Israel and Iran, brokered by President Donald Trump. Global markets rallied, with equities hitting record highs, as both nations signaled a pause in hostilities after Trump publicly condemned violations of the truce.
During the 12-day conflict, the dollar served as a safe haven, but optimism over a de-escalation spurred broad selling. In early Asian trading, currency movements remained subdued. The euro hovered near its highest level since October 2021 at $1.1621. The British pound slipped slightly to $1.3615, just off a two-year high. The Australian dollar edged up 0.02% to $0.6492 after a strong rally, while the New Zealand dollar gained 0.13% to $0.6015.
The Japanese yen held steady at 144.96, as Bank of Japan officials showed caution over rate hikes amid uncertainty from U.S. tariffs. The Swiss franc, which surged to a 10.5-year high on Tuesday, stabilized at 0.8049 per dollar.
The U.S. dollar index dipped to 97.91. While Fed Chair Jerome Powell reiterated a patient stance on rate cuts during his congressional testimony, markets still price in an 18% chance of a rate cut in July. Analysts at ANZ expect rate cuts could resume in September due to slowing economic growth and easing inflation, despite new tariffs.
Recent U.S. data, including a drop in consumer confidence and signs of labor market weakness, reinforced expectations of nearly 60 basis points of rate cuts by year-end. Meanwhile, the two-year Treasury yield fell to 3.7870%, its lowest in over a month, while the 10-year yield was steady at 4.3043%.
