Rubio Discusses Iran Crisis and Strait of Hormuz Disruptions With UK and Australia 
Australia Housing Tax Reform Sparks Debate Over Property Investor Tax Breaks 
Trump Pushes China Market Access During High-Stakes Xi Summit 
Havana Protests Erupt as Cuba Faces Severe Blackouts and Fuel Crisis 
Japan Considers Extra Budget Aid Amid Rising Fuel and Utility Costs 
S&P Global Revises Mexico Credit Outlook to Negative Amid Rising Debt Concerns 
U.S. Urges China to Help Curb Iran’s Actions in Gulf, Rubio Says 
Oil Prices Hold Above $100 as Trump-Xi Meeting and Iran Conflict Keep Markets on Edge 
Asian Stocks Edge Higher as Tech Shares Rise Ahead of Trump-Xi Beijing Summit 
BOJ Rate Hike Expectations Grow as Board Member Signals Hawkish Stance 
US Stock Futures Slip as Iran Tensions and Hot Inflation Data Pressure Wall Street 
Trump, Xi Begin High-Stakes China Summit Focused on Trade, Taiwan and Global Tensions 
New Zealand Budget 2026 Focuses on Fiscal Discipline and Infrastructure Investment 
Asian Currencies Slide as Indian Rupee Hits Record Low Amid Iran Tensions 
US, Japan Reaffirm Strong Currency Coordination Amid Yen Volatility 
Trump Faces Uphill Battle Seeking China’s Help on Iran Conflict 
Asian Stocks Steady as Iran War Concerns Persist Ahead of Trump-Xi Summit 
The U.S. dollar strengthened on Thursday as rising Treasury yields fueled expectations that the Federal Reserve could raise interest rates later this year. Investors also closely monitored the high-profile summit between U.S. President Donald Trump and Chinese President Xi Jinping, with global markets reacting to developments in U.S.-China trade relations.
During the two-day meeting, Xi acknowledged progress in trade negotiations but warned that disagreements over Taiwan could negatively impact ties between the world’s two largest economies. Trump described the gathering as potentially the “biggest summit ever,” adding to market anticipation surrounding possible economic agreements.
China’s yuan remained near its strongest levels in more than three years, with the onshore yuan holding close to 6.7840 per dollar and the offshore yuan touching 6.7817. Analysts at Barclays noted that a stable yuan could support smoother discussions between Washington and Beijing, although Chinese authorities may resist rapid currency appreciation through intervention measures.
In the broader forex market, the euro traded near $1.1714 and remained on track for its biggest weekly drop in two months. The British pound hovered around $1.3524 as political uncertainty in the United Kingdom pressured sterling.
The U.S. Dollar Index climbed to 98.48, gaining over 0.6% for the week. Meanwhile, the Japanese yen found support after Bank of Japan board member Kazuyuki Masu suggested that interest rates should rise if economic conditions remain stable.
Recent U.S. inflation data has significantly boosted the dollar. Producer prices posted their sharpest increase in four years in April, while consumer inflation accelerated to its fastest annual pace in three years. The data strengthened market expectations for tighter monetary policy under incoming Fed Chair Kevin Warsh.
According to CME FedWatch data, markets now see a 31.8% probability of a Fed rate hike in December, nearly double last week’s expectations. Rising inflation concerns also pushed Treasury yields higher, with the 10-year yield nearing one-year highs.
Elsewhere, the Australian dollar remained strong near a four-year peak due to hawkish domestic rate expectations, while the New Zealand dollar edged slightly lower.
