Iran Attack in Strait of Hormuz Pushes Oil Prices Higher 
South Korea’s KOSPI Plunges as Apple Price Hikes and OpenAI IPO Delay Shake AI Chip Stocks 
Morgan Stanley Sees Chinese Auto Market Recovery Gaining Momentum in Late Summer 
Asian Currencies Trade Mixed as Yen Hovers Near 40-Year Low, Dollar Holds Firm on Fed Outlook 
Trump Requests $11 Billion More in Farm Aid as Rising Costs Pressure U.S. Farmers 
US Dollar Slips After PCE Inflation Data Eases Fed Rate Hike Expectations 
White House Seeks $87.6 Billion Emergency Funding for Iran War, Farmers, and Ebola Response 
South Korea’s KOSPI Jumps Over 5% as Samsung, SK Hynix Rally on Micron Earnings Boost 
Japan Signals Preference for Low Interest Rates as BOJ Policy Debate Intensifies 
Asian Markets Rally as Micron and Qualcomm AI Outlook Lifts Global Tech Stocks 
Gold Falls Below $4,000 as Strong Dollar and Fed Rate Hike Expectations Weigh on Prices 
U.S. Dollar Reaches One-Year High as Tech Sell-Off and Fed Rate Hike Expectations Support Demand 
Wall Street Ends Mixed as Micron Surges, Apple Drops After Price Hikes 
Gold Drops Below $4,000 as Strong US Dollar and Fed Rate Hike Expectations Pressure Bullion 
Asian Stocks Sink as Apple Price Hikes Spark AI Valuation Fears, South Korea and Japan Lead Selloff 
Oil Prices Drop as Middle East Supply Recovery Eases Market Concerns 
The U.S. dollar hovered near three-week lows against the euro and Swiss franc on Wednesday as renewed geopolitical tensions and fiscal concerns triggered a broad selloff across U.S. assets, including stocks, bonds, and the currency itself. Investor sentiment weakened after the White House revived threats linked to Greenland, reviving the so-called “Sell America” trade that first emerged earlier this year following tariff announcements.
The dollar index, which tracks the greenback against six major currencies, fell 0.53% overnight, its sharpest single-day decline in six weeks, before stabilizing around 98.541. The euro climbed more than 1% at one point on Tuesday, reaching its strongest level since late December at $1.1770, before easing slightly to trade near $1.1720. Meanwhile, the dollar slid nearly 1.2% against the Swiss franc, touching 0.78795, also a December low, before recovering modestly.
Market analysts cited growing concerns over prolonged uncertainty, strained international alliances, declining confidence in U.S. leadership, potential retaliatory measures, and accelerating de-dollarization trends. Although investors remain hopeful that tensions may ease, uncertainty continues to weigh on the dollar.
U.S. equities also felt the pressure, with the S&P 500 and Nasdaq Composite falling to one-month lows as investors returned from a long holiday weekend. Treasury yields surged to multi-month highs, reflecting heavy selling in government bonds.
In Asia, the Japanese yen faced its own turmoil. The currency weakened sharply after Prime Minister Sanae Takaichi called snap elections for February 8 and pledged aggressive fiscal expansion. This fueled a selloff in Japanese government bonds, pushing long-term yields to record highs. The 40-year JGB yield spiked above 4.2% before easing slightly, while the yen hit record lows against both the euro and Swiss franc.
With the Bank of Japan expected to hold rates steady at its upcoming policy meeting, markets will closely watch guidance on future tightening as inflation risks rise amid political uncertainty and a weak yen.
