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Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns 
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Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure 
South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
Gold and Silver Prices Rebound After Volatile Week Triggered by Fed Nomination 
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility 
Thailand Inflation Remains Negative for 10th Straight Month in January 
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 
The U.S. dollar steadied on Wednesday after posting its sharpest drop in over three weeks, driven by weaker-than-expected inflation data and easing global trade tensions. The consumer price index (CPI) rose just 0.2% in April, under the 0.3% forecast, reinforcing market expectations of Federal Reserve rate cuts later this year. March CPI had slipped 0.1%, and while inflation is expected to rise due to new tariffs, recent trade developments have slightly improved the outlook.
President Donald Trump recently hinted at "potential deals" with India, Japan, and South Korea, following a 90-day trade truce with China and an agreement with the UK. These developments eased recession fears that had been fueled by Trump’s earlier tariff hikes, which sent the dollar index to a one-month high on Monday before Tuesday’s 0.8% decline.
The dollar index hovered at 100.94 early Wednesday, while the greenback held steady at 147.45 yen. The euro stood at $1.1188 and the pound at $1.3311. Against the Swiss franc, the dollar was flat at 0.8390, and in offshore trading, it held at 7.1928 yuan after dipping to a six-month low.
Despite the dip, analysts at Commonwealth Bank of Australia expect a 2–3% rebound in the dollar index in the coming weeks, citing improved trade sentiment. However, they don’t foresee a full recovery to the year’s starting levels near 108.50, noting that unpredictable U.S. policies have damaged the dollar’s safe-haven appeal.
Data from Bank of America’s latest fund manager survey showed global investors held their biggest underweight in the dollar in 19 years. Markets are pricing in about 50 basis points in Fed rate cuts by year-end, with the next expected in September.
