Asian Stocks Fall as Bond Yields Surge Ahead of Trump-Xi Summit 
UK PM Burnham to Unveil Economic Vision at Labour Conference 
Fed’s Hammack Says Bond Yield Surge Is Not Driven by Inflation Fears 
European Stocks Fall as Bond Yields and Geopolitical Risks Weigh 
US 10-Year Treasury Yield at 6% Emerges as New Market Risk Threshold 
Canadian Dollar Faces Pressure as Fed-BoC Policy Gap Widens 
U.S. Dollar Hits Two-Month High as Oil, Treasury Yields Surge 
RBI Uses $10 Billion Currency Swaps to Drain Excess Rupee Liquidity 
Dollar Holds Near Two-Month High as Yen Approaches 160 
Oil Prices Jump 3% as Houthi Attack Revives Supply Fears 
Oil Prices Fall on U.S.-Iran Hormuz Deal Hopes 
Fed Unveils Stablecoin Rules Under GENIUS Act 
Asian Stocks Fall as Surging Bond Yields Rattle Markets 
Germany’s 2026 Growth Outlook Strengthens on Fiscal Spending 
US Comfortable With Canada Trade Standoff as Import Bans Loom 
Gold Prices Fall as Treasury Yields Rise on Fed Rate Hike Bets 
Gold Holds Near $4,275 as Rising Treasury Yields Fuel Fed Rate Hike Bets 
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The U.S. dollar is poised for a weekly gain against major currencies as optimism over a limited U.S.-UK trade agreement and potential progress in upcoming U.S.-China trade negotiations lifted sentiment. Expectations for near-term Federal Reserve rate cuts also diminished after Chair Jerome Powell signaled no urgency for monetary easing.
The euro was steady on Friday morning in Asia but fell 0.6% for the week to $1.1217. The Japanese yen dropped 0.7%, briefly touching a one-month low of 146.18 per dollar. Sterling initially rose on reports of a U.S.-UK trade deal but later slipped to a three-week low of $1.3220 after the deal's modest terms were revealed. The agreement slightly boosts agricultural trade and eases U.S. auto tariffs on British cars but retains a 10% baseline tariff.
Analysts say the dollar’s strength reflects market optimism over reduced trade tensions. Steve Englander of Standard Chartered noted that prospects of a broader trade détente—especially with China—may be calming market fears. President Trump announced the UK deal and hinted at possible tariff reductions on China, with negotiations set to begin in Switzerland this weekend. Reports suggest the U.S. may halve tariffs on Chinese imports, though the White House called the claims speculative.
Risk sentiment improved, as seen in Bitcoin’s rally above $100,000. Meanwhile, the Australian and New Zealand dollars weakened, falling 0.7% and trading at $0.6391 and $0.5892 respectively. Central banks mostly held rates steady, though the Bank of England implemented a cut. Market odds of a Fed rate cut in June dropped from 55% to 17% following Powell’s remarks.
Despite the greenback's G10 strength, it slipped against some Asian currencies, including the Taiwan and Singapore dollars, amid regional currency surges and central bank interventions.
