Societe Generale analysts highlight that CNY strength has resumed, with USD/CNY nearing 6.80 for the first time in three years as China-linked tankers transit the Strait of Hormuz.
The US Dollar Index (DXY) fell toward the 98.10 region, reaching multi-week lows as softer inflation data and improving global sentiment led to a broad sell-off of the Greenback. Declining Oil prices and easing yields further contributed to the downward pressure.
UOB’s Jester Koh highlights that MAS raised its 2026 core and headline inflation forecast ranges to 1.5–2.5% as imported energy costs surge. He stresses that higher Oil and gas prices will pass through to Singapore’s CPI via electricity, transport and goods.
AUD/USD trades with a mild positive bias on Tuesday, supported by a softer US Dollar (USD) as renewed hopes of US-Iran talks weigh on the Greenback and lift demand for risk-sensitive currencies like the Australian Dollar (AUD).
OCBC strategists Sim Moh Siong and Christopher Wong note USD/KRW traded higher on heightened Middle East tensions and Oil gains, with Korean Won pressured as a higher-beta, net Oil importer currency.
West Texas Intermediate (WTI) US Oil declines on Tuesday, with the barrel trading around $89.10 at the time of writing, down 3.93% on the day.
Commerzbank’s Charlie Lay and Moses Lim note that Monetary Authority of Singapore (MAS) has tightened policy by slightly increasing the pace of Singapore Dollar (SGD) Nominal Effective Exchange Rate (NEER) appreciation, focusing on inflation rather than growth.
The Dow Jones Industrial Average (DJIA) gained around 300 points, or 0.60%, trading near 48,500. The S&P 500 rose 1.1% while the Nasdaq Composite jumped 1.8%, led by a broad rally in technology names.
The Pound Sterling (GBP) advances on Tuesday as traders remain optimistic about a possible resolution to the US-Iran conflict. At the same time, the US Dollar (USD) weakens amid a hot US inflation report that missed forecasts of a higher print.
The USD/JPY pair is trading with a bearish bias near the 158.90 region on Tuesday, extending recent losses as the US Dollar (USD) continues to soften amid improving risk sentiment on renewed hopes of United States (US)-Iran negotiations.
MUFG’s Senior Currency Analyst Michael Wan highlights that Trump has begun a US naval blockade of the Strait of Hormuz, but risk assets have rebounded as talks between the US and Iran continue.
Christine Lagarde, President of the European Central Bank (ECB), spoke to Bloomberg TV on Tuesday. She claimed that they need to keep an eye on the medium term while checking data.
