Asian Markets Rally as Dollar Weakens; Fed Speculation Grows

Asian equities surged to three-year highs amid a broad dollar retreat, with MSCI's Asia-Pacific ex-Japan index closing 0.2% higher—marking a 3% weekly gain. The Nikkei breached 40,000 as risk appetite improved following eased geopolitical and trade tensions.

The dollar's 1.4% weekly drop threatens its worst first-half performance since the Nixon era, with the euro hitting $1.1745—a level unseen since September 2021. Market participants now scrutinize a WSJ report suggesting potential Fed leadership changes before November.

Cryptocurrency markets remained conspicuously absent from the day's narrative, though traditional market volatility often spills into digital asset flows. Traders await signs of correlation breakdown or convergence as macro uncertainty persists.