Asian Markets Rally as Micron and Qualcomm AI Outlook Lifts Global Tech Stocks 
Gold Falls Below $4,000 as Strong Dollar and Fed Rate Hike Expectations Weigh on Prices 
Asian Currencies Trade Mixed as Yen Hovers Near 40-Year Low, Dollar Holds Firm on Fed Outlook 
Iran Attack in Strait of Hormuz Pushes Oil Prices Higher 
South Korea Remains MSCI Emerging Market Despite Reform Progress 
Wall Street Ends Mixed as Tech Stocks Struggle Ahead of Micron Earnings 
Bank Regulation Rollbacks in the U.S. and UK Could Increase Financial Risks, Study Warns 
Oil Prices Drop as Middle East Supply Recovery Eases Market Concerns 
South Korea’s KOSPI Plunges as Apple Price Hikes and OpenAI IPO Delay Shake AI Chip Stocks 
Oil Prices Rebound as Strait of Hormuz Tensions Return After Ship Attack Near Oman 
South Korea’s KOSPI Jumps Over 5% as Samsung, SK Hynix Rally on Micron Earnings Boost 
Australia Jobs Growth Strengthens Rate Hike Outlook 
SpaceX Eyes Starlink Mobile Phone Service to Challenge Verizon, AT&T, and T-Mobile 
Australian Household Spending Rebounds Strongly in May as Travel and Dining Drive Consumer Growth 
S&P Affirms Brazil’s BB Credit Rating with Stable Outlook Amid Fiscal Challenges 
BOJ Hawk Signals Faster Interest Rate Hikes Amid Inflation Risks 
Morgan Stanley Sees Chinese Auto Market Recovery Gaining Momentum in Late Summer 
The Japanese yen remained a focal point in global foreign exchange markets on Monday, as it trimmed earlier gains against the U.S. dollar following a sharp rally driven by speculation of government intervention. The USD/JPY pair edged slightly higher to around 157.21 after briefly strengthening earlier in the day, highlighting ongoing volatility in the currency markets.
Market sentiment suggests that Japanese authorities may have stepped in last week to stabilize the yen, which has faced persistent weakness due to macroeconomic pressures. Reports indicate that Tokyo could have spent as much as 5.48 trillion yen (approximately $35 billion) in currency intervention, marking its first such move in two years. Analysts believe this action was aimed at preventing the dollar-yen exchange rate from breaching the 160 level, especially during Japan’s Golden Week holiday period when trading volumes are typically lower and price swings more pronounced.
Despite the intervention, experts caution that structural factors continue to weigh on the yen. Higher global oil prices, the U.S. Federal Reserve’s stance on interest rates, and Japan’s relatively low real yields all contribute to sustained downward pressure. Additionally, the yen remains a preferred funding currency for carry trades, further limiting its upside potential.
Meanwhile, the U.S. dollar gained support from increased safe-haven demand amid escalating geopolitical tensions in the Middle East. Renewed conflicts in the Strait of Hormuz, a critical route for global oil shipments, have heightened market uncertainty. Reports of attacks on vessels and disruptions to shipping routes have raised concerns about energy supply, boosting demand for the dollar.
The U.S. dollar index rose by 0.2% to 98.37, reflecting broader strength against major currencies. The euro and British pound both declined by 0.3%, trading at $1.1690 and $1.3530 respectively. Ongoing geopolitical risks and central bank policies are expected to keep forex markets volatile in the near term.
