US Oil Blockade Deepens Iran’s Economic Crisis 
Asian Currencies Rise as Yen Surges on BOJ Rate Hike Bets 
Gold Prices Hold Near $4,400 as Fed Rate Hike Bets Ease 
FTSE 100 Falls as US-Iran Conflict Drives Oil Prices Higher 
India Services PMI Rises to 54.1 as Hiring Accelerates 
Gold Prices Hold Near $4,500 as Fed Rate Hike Bets Ease 
Oil Prices Slip as Trump Eases Iran Supply Fears 
Australia Trade Surplus Beats Forecasts in July as Exports Fall 
Treasury Yields Set to Stay High as Debt Supply Pressures Bond Market 
US Tech Giants’ AI Bond Boom Raises Euro Zone Borrowing Risks 
European Stocks Edge Higher as Bond Yields Ease 
South Korea Inflation Rises to 3.1% in August 
Asian Currencies Weaken as Dollar Rises, Kiwi Slides After RBNZ Hike 
Iran’s Hormuz Oil Pressure Fades as Gulf Crude Flows Continue 
Yen Extends Gains as BOJ Rate Hike Bets Rise 
Dollar Hits Two-Week High as Iran Conflict Lifts Oil and Bond Yields 
Oil Prices Surge as U.S.-Iran Conflict Threatens Hormuz Supply 
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The Japanese yen continued to struggle on Wednesday, slipping further as investors remained focused on the widening interest rate gap between Japan and other major economies. Despite expectations that the Bank of Japan (BOJ) will tighten monetary policy next week, the yen hovered near 156.82 per dollar after a sharp 0.6% decline the previous session, showing no clear catalyst for the move. The currency also stayed pinned near a record low against the euro, while the Australian dollar maintained its strong performance against the yen following Tuesday’s gains.
Analysts attribute the yen’s vulnerability to rising long-term U.S. yields and ongoing concerns about Japan’s fiscal outlook. Alex Hill of Electus Financial noted that market sentiment continues to pressure the yen and suggested further weakness may extend into the new year. He added that crosses such as kiwi/yen and Aussie/yen appear well positioned for additional upside. Although the BOJ is expected to raise interest rates, investors are watching closely for signals from Governor Kazuo Ueda regarding the bank’s future policy direction, particularly as Japan weighs new fiscal measures that complicate its already delicate economic landscape.
Broader currency markets traded cautiously ahead of the U.S. Federal Reserve’s policy announcement. A 25-basis-point rate cut is widely expected, keeping the dollar stable with the dollar index holding at 99.23. The euro traded near $1.1625, while sterling edged slightly higher to $1.3301. Market participants will be closely analyzing Fed Chair Jerome Powell’s comments and the updated dot plot, which may offer clues about rate cut expectations for 2026.
In the commodity-linked currencies, the Australian dollar traded at $0.6643 after nearing a three-month high on hawkish remarks from the Reserve Bank of Australia. The New Zealand dollar eased slightly to $0.5776. Investors remain attentive to U.S. economic data and shifting inflation expectations as central banks navigate diverging policy paths.
