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Dollar feeble as rate hike bets dwindle, Iran war worries grow

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Dollar feeble as rate hike bets dwindle, Iran war worries grow
The U.S. dollar held near multi-month lows against most major currencies on Tuesday as traders walked back expectations of near-term monetary tightening, although the imminent threat of an escalation in the Middle East war left sentiment fragile.

The euro fetched $1.1581 in ​early Asian hours, not far from the two-month high of $1.1614 it touched on Monday. Sterling was at $1.3548, just shy of the three-month peak it touched in the previous session.

Data showed last week that U.S. retail sales fell in July for the first time in nine months, following unexpected ‌job losses last month ⁠and mild ⁠inflation readings. The run of softer data has led investors to scale back expectations of a rate hike by the U.S. Federal Reserve.

Traders expect a 35% ​chance of a rate increase at the Fed’s September meeting, compared with 52.2% a week ago, according to the CME FedWatch tool.

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Analysts ​though remain cautious of where inflation may head, especially with the critical Strait of Hormuz remaining effectively shut and an impasse in the talks to end the U.S.-Iran conflict.


“Inflation has been above target for most of the past five years, and whilst ​a high 2% annual pace may prove acceptable to the Fed, it leaves the ⁠inflation process ‌with little to no breathing room in a world of constant supply shocks,” said Nohshad Shah, ​head of EMEA fixed ​income sales at Citadel Securities.
Iran said it would shift to a “fully offensive” military posture because ⁠efforts to negotiate a permanent end to the war with the U.S. have stalled, ​a senior Iranian official told Reuters as Washington ruled out extending their June ceasefire ​agreement.Bond yields around the world were on the rise again as traders remained wary of the impact of elevated oil prices and a prolonged closure of the Strait of Hormuz.

Brent crude futures were 0.3% higher at $91.14 a barrel after rising to their highest since July 30 on Monday.

The yield on the 30-year bond hovered near its highest level in nearly 20 years, while the 10-year JGB yield hit its highest level since September 1996. [JP/]

The spotlight has also been on recent U.S. Treasury auctions ‌in the past week for the multi-decade yields demanded by investors to absorb Washington’s borrowing needs.

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“When it comes to longer-dated Treasury issuance, investors are increasingly focused and concerned about the growing amount of U.S. ​debt and America’s lack ​of fiscal discipline,” said Anthony ⁠Saglimbene, chief market strategist at Ameriprise Financial.

“Frequent, large-scale treasury auctions are a chance for the bond market to push back against the government’s eroding fiscal trajectory, as they demand higher yields for the auctions to clear.”

The yen was stuck just below the ​160 level, shifting the focus to the Bank of Japan meeting next month, where the central bank is set to raise interest rates and is considering hiking more aggressively after that, sources told Reuters.

It was last at 159.46 per U.S. dollar, having erased nearly half of the gains from the joint U.S. and Japan intervention at the end of July to lift the fragile yen away from 40-year lows.

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The Australian dollar firmed 0.11% to $0.71119, perched near its strongest level since early June. The New Zealand dollar was at $0.5902. [AUD/]

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How ASEAN Is Building a Cooperative Path to Energy Security by 2050

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How ASEAN Is Building a Cooperative Path to Energy Security by 2050

Southeast Asia’s energy demand is surging due to industrialization, digitalization, and population growth, projected to double by 2050. To ensure energy security, affordability, and sustainability amidst fossil fuel reliance, the region is fostering deep cooperation.

Initiatives like the ASEAN Power Grid promote cross-border electricity trading and renewable integration, while a framework explores nuclear energy’s role as a low-carbon complement. This collective approach, emphasizing shared investment and governance, enables scalable, resilient outcomes, showcasing how regional collaboration can drive a pragmatic and sustainable energy transition in the Global South.

  • Across Southeast Asia, energy demand is being driven by industrialization, digital expansion and population growth.
  • Meeting rapidly growing demand while keeping energy secure, affordable and sustainable will require a more integrated power system.
  • Countries in the region have already started to develop and collaborate on projects focussed on grid integration and nuclear energy.

Electricity demand across the Association of Southeast Asian Nations (ASEAN) is projected to double by 2050, according to the International Energy Agency, fuelled by rapid industrialization, digital expansion and fast-growing cities. But nearly 80% of the region’s energy still comes from fossil fuels, leaving economies exposed to volatile prices, supply disruptions and rising emissions.

Like many parts of the Global South, ASEAN must now work out how to meet this soaring demand while keeping energy affordable, reliable and aligned with net-zero ambitions. The answer lies in cooperation, not competition.

In an era of geopolitical uncertainty and fragmented institutions, ASEAN offers a counter-narrative: that regional cooperation still works. Collective action may take longer to align, but it delivers more scalable, resilient and impactful outcomes than isolated national strategies.

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Why is BHP stock surging today?

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Why is BHP stock surging today?

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Walmart Earnings Preview: The Flywheel Is Still Flywheelin' But Ultimately, Operating Margin Needs To Improve

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Wall Street Brunch: Walmart Weighs In As Q4 GDP Hits (undefined:WMT)

Walmart Earnings Preview: The Flywheel Is Still Flywheelin' But Ultimately, Operating Margin Needs To Improve

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APA Corporation: Fundamentals Keep Improving As The Re-Rating Case Gets Stronger

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Kimbell Royalty Partners: Upgrading To Buy As Growth Accelerates (NYSE:KRP)

APA Corporation: Fundamentals Keep Improving As The Re-Rating Case Gets Stronger

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A Breakdown of the Financial Advice That’s Flying All Over TikTok

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A Breakdown of the Financial Advice That’s Flying All Over TikTok

Open a Roth IRA. Buy this stock before it pops. Make $100,000 a month by starting your own side hustle.

A sea of financial advice courses through TikTok users’ phones each day. This money-minded self-help is far more widely available and less regulated than the traditional financial services industry.

And it is increasingly driving the way people manage their money. Fidelity Investments credits these financial influencers in part for the skyrocketing number of people who are opening Roth IRAs, and the 73% rise in contributions to them among Gen Zs year-over-year in the second quarter of 2026.

The Financial Industry Regulatory Authority found that those who use social media for investment advice rate their investment knowledge higher than those who don’t, but perform worse on an objective knowledge test. They are also more susceptible to investment fraud.

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Live cattle export industry seeks policy certainty with launch of 10-year plan

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Live cattle export industry seeks policy certainty with launch of 10-year plan

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HUB24 FY 2026 presentation: profit surges 51%, shares fall 7.5%

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HUB24 FY 2026 presentation: profit surges 51%, shares fall 7.5%

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Divisadero Street Capital buys $6.1m in Lifeway Foods stock

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Divisadero Street Capital buys $6.1m in Lifeway Foods stock

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Zempilas agrees Taylor needs to lock-in GST deal, too

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Zempilas agrees Taylor needs to lock-in GST deal, too

Opposition leader Basil Zempilas says he’ll seek a firm commitment about West Australia’s current GST arrangement from federal Liberal leader Angus Taylor.

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Yalla Group Limited (YALA) Q2 2026 Earnings Call Transcript

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OneWater Marine Inc. (ONEW) Q1 2026 Earnings Call Transcript