Oil Prices Rise as Hormuz Reopening Remains Uncertain 
Asian Stocks Rise as Weak US Jobs Data Eases Fed Rate Hike Bets 
Goldman Sachs Sees US Stock Buybacks Outpacing Equity Issuance as AI Funding Rises 
South Korean Won Leads Asian FX Losses as Dollar Rises 
Iran-Oman Near Strait of Hormuz Deal as Shipping Tensions Persist 
China Trade Surplus Beats Forecasts in July as Exports Stay Strong 
China Exports Beat July Forecasts as AI Demand Fuels High-Tech Trade 
Japan Posts First Current Account Deficit in 17 Months as Dividend Payments Surge 
US Dollar Near Two-Month Low as Markets Await Inflation Data 
BOJ Rate Hike Expectations Rise Ahead of September Meeting 
US Dollar Gains as Iran Tensions, Fed Rate Hike Bets Rise 
Asian Stocks Rise as Weak US Jobs Data Eases Fed Rate Hike Fears 
US Yen Intervention Unlikely to Deliver Lasting Recovery, Yardeni Says 
Japan Executives Warn Weak Yen and Currency Volatility Threaten Economy 
European Stocks Flat as Oil Prices Rise, US CPI in Focus 
The U.S. dollar posted strong gains on Wednesday after the Federal Reserve decided to keep interest rates unchanged and signaled that policymakers may still consider future rate hikes as inflation risks remain elevated.
The U.S. Dollar Index (DXY), which measures the greenback against a basket of six major currencies, climbed nearly 1% to 100.38 by 16:28 ET (20:28 GMT). The move reflected growing investor confidence in the dollar following the Federal Open Market Committee’s (FOMC) latest policy announcement.
At its first meeting under newly appointed Federal Reserve Chair Kevin Warsh, the central bank left the benchmark federal funds rate unchanged at 3.50%–3.75%. The decision comes as inflation continues to challenge policymakers, prompting expectations that borrowing costs could remain higher for longer.
Market participants closely watched the Fed’s outlook for interest rates, particularly whether officials would maintain expectations for future policy easing. However, the latest signals suggest the central bank remains focused on controlling inflation and is prepared to tighten monetary policy further if necessary.
Warsh, who assumed the role of Fed chair last month, also unveiled five task forces aimed at reviewing key aspects of the Federal Reserve’s operations. These groups will assess areas including central bank communications, balance sheet management, and the framework used to evaluate inflation trends. Most recommendations are expected to be completed before year-end.
“Change isn’t easy. Change is filled with risk,” Warsh said while outlining the review initiative.
The latest decision highlights a notable shift in the Fed’s policy trajectory. After raising interest rates to their highest level in more than two decades three years ago, the central bank began an easing cycle in September 2024, cutting rates six times before pausing late last year. With inflation concerns persisting, Wednesday’s announcement indicates that interest rates could remain at current levels for an extended period, providing additional support for the U.S. dollar and influencing forex market expectations.
