Australian Shares Fall as Westpac Slides, Miners Gain Ahead of RBA Decision 
Singapore Raises 2026 GDP Growth Forecast to 4.5%-5.5% as AI Boom Fuels Economy 
BOJ Signals Faster Rate Hikes as Inflation Risks Raise September Move Odds 
US Dollar Near Two-Month Low as Markets Await Inflation Data 
S&P 500, Nasdaq Futures Rise as Iran Risks and CPI Loom 
Gold Prices Hold Near Seven-Week High as Markets Await U.S. Inflation Data 
Iran-Oman Near Strait of Hormuz Deal as Shipping Tensions Persist 
UK Retail Sales Rise as World Cup and Heatwave Boost Food, Pubs and Clothing 
US Yen Intervention Unlikely to Deliver Lasting Recovery, Yardeni Says 
England Drought Expands to 71% as Heatwave Deepens Water Crisis 
Asian Stocks Rise as Weak US Jobs Data Eases Fed Rate Hike Bets 
South Korean Won Leads Asian FX Losses as Dollar Rises 
Oil Prices Set for Steep Weekly Losses as Hormuz Deal Stalls 
Gold Price Hits Two-Month High as Investors Await US Inflation Data 
Gold Prices Rise as Fed Rate Hike Bets Ease 
Oil Prices Rise as Hormuz Reopening Remains Uncertain 
The Japanese yen steadied against the U.S. dollar on Tuesday after suffering a sharp decline in the previous session, as the impact of the recent joint U.S.-Japan currency intervention continued to fade. Meanwhile, the Australian dollar traded near an eight-week high ahead of the Reserve Bank of Australia’s latest policy decision.
The yen strengthened to around 158.93 per dollar during Asian trading but remained well below last week’s three-month high of 155.20. That rally followed a rare coordinated U.S.-Japan yen-buying intervention in late July after USD/JPY climbed to a 40-year high of 163.99.
Since then, the yen has surrendered nearly half of its intervention-driven gains, fueling expectations that Japanese and U.S. authorities could step into the foreign exchange market again if weakness accelerates.
Marc Chandler, chief market strategist at Bannockburn Capital Markets, said traders appeared to be testing policymakers’ determination. Trading volumes were also lighter because Japanese financial markets were closed for a holiday.
Currency speculators have significantly reduced bearish yen positions. U.S. regulatory data showed net yen shorts declined by $8.865 billion to $3.604 billion in the week ending August 4, marking the largest reduction in more than 12 years. However, analysts believe traders could gradually rebuild short positions, particularly if USD/JPY approaches the 160 level again.
Markets are pricing in slightly more than a 50% probability of a Bank of Japan interest rate hike. The BOJ also faces political pressure as it balances monetary tightening with concerns surrounding Japan’s bond market.
Elsewhere, the Australian dollar traded around $0.7057 ahead of the RBA rate decision. The central bank is widely expected to leave interest rates unchanged while maintaining a cautious stance on persistent inflation risks.
The U.S. dollar was broadly stable against major currencies as oil prices remained near one-week highs amid uncertainty surrounding efforts to end the U.S.-Iran conflict. The euro traded near $1.1544, while sterling stood around $1.3509.
Investors will next focus on Wednesday’s U.S. CPI inflation report, followed by producer prices on Thursday and retail sales on Friday for further clues about inflation and the Federal Reserve’s interest rate outlook.
