Overview

The U.S. dollar continued to gain against Asian currencies on 8 July 2026 as renewed Middle‑East geopolitical tensions and safe‑haven demand kept the yen near a 40‑year low and supported the greenback.

Currency Movements

  • The dollar index hovered around 101, a one‑week high, while USD/JPY traded near ¥162.20, a level that has previously triggered official intervention.
  • The New Zealand dollar appreciated about 0.6% versus the dollar after the Reserve Bank of New Zealand lifted its policy rate by 25 basis points to 2.50% and signalled possible further tightening.
  • The Australian dollar edged higher, with USD/AUD slipping to 0.6941, a decline of roughly 0.2%.
  • The South Korean won weakened, with USD/KRW rising about 0.7% to approximately 1,503 per dollar, reflecting losses at Samsung Electronics and SK Hynix following a post‑earnings sell‑off in the semiconductor sector.
  • The Taiwanese dollar fell, with USD/TWD up about 0.3% to around 32.04, even as Taiwan’s equity benchmark outperformed regional peers.
  • The Malaysian ringgit was largely unchanged; USD/MYR stayed near current levels ahead of the Bank Negara Malaysia rate decision, with OCBC expecting the overnight policy rate to remain at 2.75%.
  • The Chinese yuan showed little movement, with USD/CNH around 6.80 and USD/CNY unchanged after the People’s Bank of China kept firm daily fixings.
  • The Indian rupee weakened modestly, with USD/INR up roughly 0.3%; the Thai baht and Hong Kong dollar were also little changed.

Drivers

  • Fresh U.S. strikes on Iran and tightened sanctions on Iranian oil exports after attacks on commercial shipping in the Strait of Hormuz kept oil prices elevated and heightened inflation concerns, reinforcing demand for the dollar.
  • A technology‑led sell‑off on Wall Street reduced risk appetite, and weakness in South Korea’s semiconductor sector spilled over to broader Asian markets, further supporting the greenback.
  • Bank of Japan board member Toichiro Asada reiterated that Japan will only normalize policy gradually, noting that clearer evidence of demand‑driven inflation is required before any additional rate hikes.

Upcoming Events

  • Market participants await the Federal Reserve’s June policy‑meeting minutes later in the day for clues on U.S. monetary stance.
  • China’s June inflation data and the Bank Negara Malaysia’s interest‑rate decision, scheduled for Thursday, are also expected to influence regional currency dynamics.