Fed’s Hammack Says Bond Yield Surge Is Not Driven by Inflation Fears 
Japanese Bank Stocks Surge as Bond Yields Fuel Rate Hike Bets 
Soybean Futures Slip as Traders Await Trump-Xi Trade Signals 
Germany’s 2026 Growth Outlook Strengthens on Fiscal Spending 
Wall Street Ends Flat as Oil, Treasury Yields and Fed Jitters Rattle Markets 
US 10-Year Treasury Yield at 6% Emerges as New Market Risk Threshold 
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 
Asian Stocks Fall as Bond Yields Surge Ahead of Trump-Xi Summit 
Mexico-US Trade Talks Delayed to October as Tariff Negotiations Continue 
Fed Unveils Stablecoin Rules Under GENIUS Act 
Canadian Dollar Faces Pressure as Fed-BoC Policy Gap Widens 
Asian Currencies Mixed as Dollar Holds Near Two-Month High 
Japanese Yen Rebounds as Trump Flags Currency Weakness 
Oil Prices Jump 3% as Houthi Attack Revives Supply Fears 
Trump, Xi Focus on Trade and AI at White House Summit 
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The U.S. dollar edged higher on Tuesday as geopolitical tensions in the Middle East and investor caution ahead of major central bank meetings kept most currencies range-bound. Market sentiment remained risk-averse, with attention turning to the Bank of Japan (BOJ) and the U.S. Federal Reserve.
The BOJ is expected to maintain interest rates at its policy meeting, while investors await comments from Governor Kazuo Ueda regarding inflation and potential adjustments to bond-buying. The yen slightly strengthened to 144.70 per dollar, recovering modestly after earlier losses.
Carol Kong, currency strategist at Commonwealth Bank of Australia, noted the BOJ’s role as the next key market driver, especially amid Japan’s inflation and trade concerns. Prime Minister Shigeru Ishiba’s recent tariff discussions with U.S. President Donald Trump ended without agreement, according to Fuji TV.
Meanwhile, the dollar gained on safe-haven demand as tensions escalated between Iran and Israel. Trump’s early departure from the G7 summit and his call for evacuation from Tehran underscored the crisis. Still, DBS analysts said global spillover risk remains “manageable” for now.
The risk-sensitive Australian dollar fell 0.27% to $0.6507, while the New Zealand dollar slipped 0.17% to $0.6049. The euro dipped 0.1% to $1.1545, and the British pound declined 0.09% to $1.3563. The U.S. dollar index edged up to 98.23.
Looking ahead, the Fed’s policy decision on Wednesday is the week’s major event. While rates are expected to remain steady, investors will focus on the dot plot and economic projections for clues on future policy. Ronald Temple of Lazard predicts no rate cuts this year, diverging from market expectations of two.
Trump also signed a deal to reduce certain tariffs on British imports, advancing U.S.-UK trade negotiations.
