US Dollar Near Two-Month Low as Markets Await Inflation Data 
Gold Prices Hold Near Seven-Week High as Markets Await U.S. Inflation Data 
Japan Posts First Current Account Deficit in 17 Months as Dividend Payments Surge 
Gold Prices Rise as Fed Rate Hike Bets Ease 
Asian Stocks Mixed as RBA Holds Rates, Oil Risks Rise 
South Korean Won Leads Asian FX Losses as Dollar Rises 
Wall Street Slips as Oil Prices Surge 5% on Iran-Hormuz Uncertainty 
Asian Currencies Steady as Markets Await U.S. Inflation Data 
China Inflation Cools in July as CPI Misses Forecast, PPI Deflation Eases 
European Stocks Flat as Oil Prices Rise, US CPI in Focus 
Japan Executives Warn Weak Yen and Currency Volatility Threaten Economy 
Oil Prices Rise as Hormuz Reopening Remains Uncertain 
Oil Prices Rise as US-Iran Talks Stall, Inflation Risks Grow 
S&P 500, Nasdaq Futures Rise as Iran Risks and CPI Loom 
Singapore Raises 2026 GDP Growth Forecast to 4.5%-5.5% as AI Boom Fuels Economy 
Gold Price Hits Two-Month High as Investors Await US Inflation Data 
The U.S. dollar climbed to its strongest level since mid-May 2025 on Thursday after the Federal Reserve signaled a more hawkish monetary policy outlook, reinforcing expectations that interest rates could rise again before the end of the year.
The U.S. Dollar Index (DXY), which measures the greenback against a basket of six major currencies, advanced 0.7% to 100.83. Investor sentiment remained focused on the Federal Reserve’s latest policy decision, where officials unanimously kept the federal funds rate unchanged at 3.50%–3.75%.
While rates were left on hold, markets reacted strongly to the Fed’s updated Summary of Economic Projections (SEP). The latest dot plot indicated a federal funds rate of 3.8% by the end of 2026, higher than the 3.4% projected in March. Notably, nine of the eighteen Federal Open Market Committee (FOMC) participants now expect at least one quarter-point rate increase this year, marking a significant shift from earlier expectations for rate cuts. Higher interest rates generally support the U.S. dollar by increasing returns on dollar-denominated assets.
The meeting also marked the first policy decision under new Federal Reserve Chair Kevin Warsh. During his inaugural press conference, Warsh announced reviews of the Fed’s communications strategy, balance sheet management, economic data usage, AI’s impact on productivity and employment, and the central bank’s inflation framework. However, he emphasized that the Fed’s 2% inflation target remains unchanged.
Meanwhile, the Bank of England held its benchmark interest rate steady at 3.75%, citing ongoing inflation concerns despite easing energy market pressures. Following the decision, the British pound fell 0.6% against the dollar to $1.3203.
In Asia, the Japanese yen weakened further, pushing USD/JPY above the closely watched 160 level. Japanese officials reiterated their readiness to intervene if currency volatility intensifies.
Geopolitical developments also supported market sentiment after the United States and Iran signed an interim memorandum of understanding aimed at reducing regional tensions. The agreement includes a 60-day negotiation period, commitments regarding Iran’s nuclear program, and the reopening of the Strait of Hormuz without additional transit charges.
Despite improved risk appetite following the diplomatic breakthrough, the Fed’s unexpectedly hawkish stance remained the dominant market driver, helping propel the U.S. dollar higher against major global currencies.
