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UOB’s Lee Sue Ann and Jester Koh note that the Reserve Bank of New Zealand raised the Official Cash Rate to 2.50% in July and adopted a more hawkish tone as inflation risks remain elevated. They keep their OCR forecast at 2.50% through 2Q27, but highlight that risks are skewed towards further tightening if inflation pressures prove more persistent or external shocks re-emerge.RBNZ hike keeps tightening bias alive”The Bank noted that headline inflation remains above target, economic activity is expected to strengthen after a temporary loss of momentum in the June quarter, and some further removal of monetary stimulus will…

Rupee slipped to its weakest level in more ​than a month on Monday, as oil prices rose after ‌U.S. and Iran traded strikes, with Tehran saying ​it had closed the vital Strait of Hormuz.The ⁠rupee closed at 95.62 per dollar, down 0.3% from its previous session close, after touching an intraday low of 95.85.The currency’s losses ‌would have been steeper had it not been for the likely central bank intervention, traders said.Brent ‌crude rose 3% to $78 per barrel, keeping markets ‌jittery ⁠over the impact of higher energy costs if ⁠the hostilities in the Gulf carry on.Steep increases in oil…

ING’s Chris Turner highlights that USD/JPY is grinding higher above 162 as higher energy prices pressure Asian currencies. He notes that Japanese authorities may follow a similar intervention pattern to last year, with potential action ahead of the Marine Day holiday. However, he argues intervention alone cannot reverse the bull trend without lower energy prices and a less hawkish Fed.Authorities eye repeat intervention pattern”USD/JPY is grinding higher again – as is USD/Asia in general – on the back of higher energy prices. Local authorities continue to try and defend against currency weakness – weakness which would add to the inflation…

USD/CHF gains ground for the second successive day, trading around 0.8100 during the Asian hours on Monday. The pair appreciates as the US Dollar rises on increased safe-haven demand amid heightened geopolitical tensions in the Middle East. According to Bloomberg, the US Central Command (CENTCOM) launched additional strikes on Sunday evening, aimed at weakening Iran’s capability to target civilian vessels navigating the waterway.Reuters reported that US forces have hit more than 300 Iranian targets over a three-night span, including 140 on Saturday alone, while Washington and Tehran issued conflicting declarations regarding whether the strait remains open to maritime traffic.Additionally, the…

The dollar jumped against most of its peers as a renewal of conflict in the Middle East fanned inflation fears and the prospect of rate hikes from central banks increased. Against the yen, the U.S. dollar was up 0.1% at 161.92 yen. The euro weakened 0.1% to $1.1403 while the British pound slipped 0.1% to $1.3383. The Australian dollar was down 0.1% at $0.6942, while its ‌kiwi counterpart slid ⁠0.1% ⁠to $0.5757.U.S. and Iranian forces exchanged heavy missile and drone assaults at the weekend, with Tehran targeting U.S. facilities in states across the Gulf on Sunday and saying it had…

The AUD/USD pair loses ground to near 0.6940 during the early Asian session on Monday. Renewed tensions in the Middle East weigh on the riskier assets such as the Australian Dollar (AUD) against the US Dollar (USD). Traders brace for the release of the US Consumer Price Index (CPI) inflation data, which is due later on Tuesday.Bloomberg reported that the US Central Command (CENTCOM) launched a new strikes against Iran on Sunday aimed at further weakening the Islamic Republic’s ability to strike civilian vessels transiting the Strait of Hormuz. The Islamic Revolutionary Guard Corps (IRGC) then launched retaliatory drone and…

DBS economists Radhika Rao and Mo Ji forecast Singapore’s advance 2Q26 Gross Domestic Product (GDP) growth at 5.8% year-on-year and 1.5% quarter-on-quarter seasonally adjusted, slightly below 1Q26 but still resilient. They cite strong manufacturing and wholesale trade on AI-related electronics demand, robust modern services and construction, and expect non-oil domestic exports to post a fourth consecutive month of double-digit growth despite a slowdown from May.AI demand underpins growth outlook”We expect Singapore’s advance GDP growth estimate for 2Q26 to register 5.8% yoy, 1.5% qoq sa, remaining resilient compared with 6.0% yoy, 1.0% qoq sa in 1Q26.””Manufacturing accelerated, while wholesale trade performed…

Silver price retreats on Friday during the North American session, edging down by 0.54%, weighed by high US Treasury yields and a sudden shift in market sentiment, after US President Trump revealed that the ceasefire is “over.” At the time of writing, the XAG/USD trades at $59.66.XAG/USD Price Forecast: Technical OutlookSilver is downward biased, as the market structure continues to respect the series of lower highs and lower lows. The Relative Strength Index (RSI) remains bearish, below its 50-neutral level and aiming towards oversold territory. Given the reasons mentioned above and geopolitical uncertainty, the XAG/USD’s path of least resistance is…

Commerzbank’s report on Taiwan notes that stronger inflation, with core CPI at 2.5%, is likely to push the CBC towards a more hawkish stance, including a possible 12.5 bp hike in H2. Despite robust AI-driven exports and firm domestic demand, USD/TWD has risen to 32.19, though analysts expect a potential pullback once seasonal dividend outflows fade.Hawkish CBC and AI-led growth”Taiwan’s June inflation surprised on the upside, with headline CPI rising to 2.6% yoy from 2.2% in May. This was the fastest pace since January 2025 and well above the Central Bank of the Republic of China’s (CBC) informal 2% threshold.…

The upcoming week will bring a major test for the US Dollar (USD), with investors focusing on the United States Consumer Price Index (CPI), Federal Reserve (Fed) Chair Kevin Warsh’s congressional testimony and a broad set of activity indicators. China’s second-quarter Gross Domestic Product (GDP) and the Bank of Canada’s (BoC) interest-rate decision will also attract significant attention.The US Dollar Index (DXY) trades near 101.00, recovering from a one-week low hit earlier on Friday as investors balance softer recent labor market data against renewed geopolitical uncertainty and persistent inflation concerns. Tuesday’s US CPI report will be the central event for…