US Dollar Slips as Softer PPI Data Eases Fed Rate Hike Expectations 
Strait of Hormuz Shipping Near Standstill After New Vessel Attacks 
Asian Stocks Steady as Iran War Keeps Oil Prices and Inflation Risks Elevated 
Canada-US Trade Talks Gain Momentum Ahead of Aug. 19 Tariff Deadline 
Oil Prices Steady as Strait of Hormuz Traffic Slows Amid US-Iran Conflict 
European Stocks Steady as U.S.-Iran War, Euro Zone Data Keep Investors Cautious 
Asian Currencies Edge Higher as Soft US Inflation Weighs on Dollar 
US Dollar Holds Firm as Fed Outlook and Iran Tensions Keep Markets on Edge 
Trump Imposes New Tariffs on Drone Imports Over US Security Concerns 
Trump Imposes New US Tariffs on Drone Imports Over National Security Concerns 
Wall Street Hits Record High as Softer Inflation Data Eases Fed Rate Hike Fears 
Gold Prices Slip From 10-Week High as Fed and Hormuz Risks Shape Outlook 
France Inflation Rises 2.4% in July as Consumer Prices Increase 
Morgan Stanley Sees Fed Holding Rates as U.S. Inflation Cools 
KOSPI Eyes Best Weekly Gain Since June as Samsung, SK Hynix Rally 
Japan Economy Grows 1.1% in Q2 as Consumer Spending Stalls 
Add as a preferred source on Google
The Japanese yen strengthened modestly against the U.S. dollar on Monday, as traders largely overlooked weaker-than-expected Japan GDP data while reassessing the outlook for Federal Reserve interest rates.
The yen gained 0.2% to around 159.055 per dollar, putting it on course for a second consecutive session of modest gains. The currency nevertheless remained within its recent trading range after data showed Japan’s economy expanded at an annualized rate of 1.1% in the second quarter.
Capital Economics described the GDP figures as mixed, noting that economic activity maintained a reasonable pace while government measures continued to limit the impact of higher energy prices. A rise in government consumption also indicated that Prime Minister Sanae Takaichi’s expansionary fiscal policies may be gaining traction.
Elsewhere in forex markets, the euro was little changed at $1.1573, while the British pound gained 0.1% to $1.3546. The Australian dollar traded at $0.7085, and the New Zealand dollar remained near $0.5891.
Recent weaker U.S. economic indicators, including nonfarm payrolls and consumer and producer inflation data, have reduced expectations for additional Federal Reserve rate hikes in 2026. Fed funds futures showed a 66.9% probability that policymakers will leave rates unchanged at the meeting ending September 16, compared with 47.6% a month earlier.
The U.S. Dollar Index slipped 0.1% to 99.519, hovering near its lowest level this month. Investors are now looking toward the Federal Reserve’s Jackson Hole symposium from August 27-29 for further signals on U.S. monetary policy.
Oil markets were volatile amid stalled U.S.-Iran negotiations and continued disruption to shipping through the Strait of Hormuz. Brent crude fell 0.1% to $88.48 per barrel as geopolitical tensions kept energy markets on edge.
The dollar was steady against China’s offshore yuan at 6.7428 ahead of upcoming Chinese economic activity data.
Cryptocurrency prices also moved lower, with Bitcoin falling 0.3% to $62,854.48 and Ether declining 0.3% to $1,874.80.
