Asian Shares Climb as Dollar Digs In—Will the Rally Hold?
Markets shrug off uncertainty as Asian equities inch higher—but the greenback isn't budging. Here's why traders are watching both trends like hawks.
The dollar's stubborn streak
No retreat, no surrender. The USD keeps flexing despite regional gains, leaving forex desks scrambling. Classic 'risk-on' play? Or just another case of markets pretending to understand Fed-speak?
Crypto quietly cheers
While traditional assets play musical chairs, Bitcoin whales are stacking sats. Because when fiat gets boring, digital gold starts looking real shiny. (Bonus jab: Wall Street still can't decide if crypto's a hedge or a hazard—meanwhile, the blockchain don't care.)
US stocks dipped on Monday
In the U.S., stocks dipped Monday as investors awaited new inflation figures. The S&P 500 fell 0.3% to 6,373.45 after lingering NEAR its record from two weeks earlier. The Dow declined 0.5% to 43,975.09, and the Nasdaq lost 0.3% to 21,385.40.
The week’s marquee U.S. release arrives Tuesday with July’s consumer price index. Economists expect a 2.8% year-over-year rise in prices, above June’s 2.7%.
Currencies were calm ahead of the data. The dollar retained recent strength as traders weighed how the CPI could shape expectations for future Federal Reserve rate cuts. The Australian dollar was little moved in the run-up to the Reserve Bank of Australia’s decision.
Dollar is holding gains
The dollar index, a gauge versus six currencies including the euro and yen, was at 98.497 at 0046 GMT after a two-session gain of 0.5%. Earlier, the greenback had retreated as markets responded to Trump’s dovish-leaning pick for a Fed governor and to like-minded names for the chair, nudging bets toward more easing.
On Tuesday, the dollar ticked up 0.1% to ¥148.28, while the euro held near $1.1615. Traders largely took the tariff MOVE in stride, having broadly expected a three-month extension.
As Washington and Beijing seek to avert triple-digit import duties, a U.S. official told Reuters that chip makers Nvidia and AMD agreed to allocate 15% of China-related sales revenue to the U.S. government in exchange for export licenses for certain semiconductors. The report underscored how trade and tech policy remain intertwined despite the truce.
For the moment, the delay in higher tariffs afforded equities some relief, even as focus turned to the inflation print and to whether talks can convert the pause into something more durable.
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