Norway Core Inflation Hits 3.2% in April, Fueling Interest Rate Hike Expectations 
US, Japan Reaffirm Strong Currency Coordination Amid Yen Volatility 
Asian Stocks Rise Despite Middle East Tensions as Chipmakers Boost Markets 
Asian Currencies Slide as Iran Tensions Boost Dollar and Oil Prices 
Dollar Rises as Strait of Hormuz Crisis Pushes Oil Prices Higher 
US Auto Industry Urges Trump to Block Chinese EV Market Access 
Dollar Gains on Safe-Haven Demand as Iran Tensions and Inflation Data Loom 
US Inflation Expected to Rise Again in April as Fed Signals Higher Interest Rates 
Trump Administration Seeks Court Pause to Reinstate 10% Global Tariffs 
US Stock Futures Slip as Trump Rejects Iran Peace Proposal Amid Rising Middle East Tensions 
China Inflation Jumps as Iran Conflict Drives Energy Costs Higher 
China Car Sales Drop Again as EV Export Growth Surges in April 
Asian Currencies Slide as Indian Rupee Hits Record Low Amid Iran Tensions 
KOSPI Hits Record High as AI Chip Demand Boosts Samsung and SK Hynix 
South Korea Central Bank Signals Inflation Concerns as Oil Prices Surge 
Trump-Iran Tensions Keep Oil Prices Elevated Amid Hormuz Supply Fears 
Goldman Sachs Delays Fed Rate Cut Forecast to 2026 Amid Rising Inflation Concerns 
Global currency markets shifted cautiously on Wednesday as easing crude oil prices offered a brief respite from recent volatility, lifting risk appetite just ahead of a series of major central bank policy decisions. The U.S. dollar paused its recent rally, with the dollar index edging marginally higher by 0.06% to 99.61 after two consecutive days of losses.
The Japanese yen held near historically sensitive levels, trading at 159.00 per dollar, as markets monitored developments surrounding Japanese Prime Minister Sanae Takaichi's scheduled meeting with U.S. President Donald Trump in Washington. Analysts from Mizuho Securities noted that the Takaichi administration may actually prefer a weaker yen, suggesting limited room for significant USD/JPY downside. The euro dipped slightly to $1.1532 ahead of the European Central Bank's two-day policy meeting, while sterling remained stable at $1.3355.
The broader market context remains shaped by the ongoing Middle East conflict, now entering its third week. The crisis has driven demand for safe-haven assets, pushing the dollar to a 10-month peak late last week as rising oil prices stoked inflation concerns. A reported rise in U.S. crude inventories, based on American Petroleum Institute data, helped temper those pressures temporarily.
The Federal Reserve is expected to announce its rate decision Wednesday, with the ECB, Bank of England, and Bank of Japan all following Thursday. None are anticipated to change rates, though investor attention will be fixed on forward guidance around inflation and economic growth. Markets currently price in roughly 25 basis points of Fed cuts for the year, while expectations for ECB rate hikes in 2026 have grown sharply since the conflict began.
Commodity-linked currencies gained modest ground, with the Australian dollar rising 0.1% to $0.7109 and the New Zealand dollar up 0.05% to $0.586. In crypto markets, Bitcoin slipped 0.40% to $74,257.80, while Ethereum gained 0.22% to $2,333.60.
