{"id":127071,"date":"2026-05-13T10:49:10","date_gmt":"2026-05-13T06:49:10","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=127071"},"modified":"2026-05-13T10:49:13","modified_gmt":"2026-05-13T06:49:13","slug":"asian-currencies-stall-as-hot-u-s-inflation-crushes-rate-cut-hopes-trump-xi-summit-and-iran-war-loom-large","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/asian-currencies-stall-as-hot-u-s-inflation-crushes-rate-cut-hopes-trump-xi-summit-and-iran-war-loom-large\/05\/13\/market-updates\/","title":{"rendered":"Asian Currencies Stall as Hot U.S. Inflation Crushes Rate Cut Hopes: Trump-Xi Summit and Iran War Loom Large"},"content":{"rendered":"\n<h1 class=\"wp-block-heading\"><\/h1>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Takeaways<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>DXY firms:<\/strong> The dollar index held near a one-week high after rising 0.4% on Tuesday.<\/li>\n\n\n\n<li><strong>CPI shock:<\/strong> U.S. consumer prices rose 3.8% year-on-year in April \u2014 the biggest annual increase since May 2023 and above expectations.<\/li>\n\n\n\n<li><strong>Rate cut bets evaporate:<\/strong> Investors have priced out expectations of any Fed rate cut this year, with modest bets for a hike rising.<\/li>\n\n\n\n<li><strong>Yen edges higher:<\/strong> USD\/JPY rose 0.1% after gaining 0.3% the previous session.<\/li>\n\n\n\n<li><strong>Won steadies:<\/strong> USD\/KRW held flat after surging 1.3% on Tuesday.<\/li>\n\n\n\n<li><strong>Rupee at record low:<\/strong> USD\/INR hit a record high of 95.7375 in the previous session, holding at 95.68 Wednesday.<\/li>\n\n\n\n<li><strong>Yuan near 3-year low:<\/strong> USD\/CNY traded flat near a three-year low, with the Chinese currency outperforming regional peers.<\/li>\n\n\n\n<li><strong>Trump-Xi summit:<\/strong> The May 13-15 Beijing meeting will cover trade, AI, tariffs, rare earth exports, and the Iran conflict.<\/li>\n\n\n\n<li><strong>Iran tensions persist:<\/strong> Trump&#8217;s &#8220;life support&#8221; warning and rejection of Tehran&#8217;s demands have kept sentiment fragile.<\/li>\n\n\n\n<li><strong>Oil above $100:<\/strong> Hormuz disruptions continue to fuel global inflationary pressures.<\/li>\n<\/ul>\n\n\n\n<p>Asian currencies were largely unchanged on Wednesday after sharp gains in the previous session, as hot U.S. inflation data prompted traders to scale back expectations for Federal Reserve rate cuts \u2014 lifting both the dollar and Treasury yields.<\/p>\n\n\n\n<p>The U.S. Dollar Index was steady near a one-week high in Asian trading after rising 0.4% on Tuesday.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Asia FX Weakens After Hot U.S. CPI<\/h2>\n\n\n\n<p>Data released on Tuesday showed that U.S. consumer prices rose 3.8% in April from a year earlier \u2014 the biggest annual increase since May 2023 and above market expectations \u2014 reinforcing concerns that the Fed may keep interest rates higher for longer.<\/p>\n\n\n\n<p>Investors have priced out expectations of any Fed rate cut this year, while bets for a hike have risen modestly.<\/p>\n\n\n\n<p>The Japanese yen&#8217;s USD\/JPY pair edged up 0.1% after rising 0.3% in the previous session.<\/p>\n\n\n\n<p>The South Korean won&#8217;s USD\/KRW pair traded largely flat after surging 1.3% on Tuesday.<\/p>\n\n\n\n<p>The Indian rupee&#8217;s USD\/INR pair hit a record high of 95.7375 rupees in the previous session. It traded largely flat at 95.68 rupees on Wednesday.<\/p>\n\n\n\n<p>The Singapore dollar&#8217;s USD\/SGD and the Australian dollar&#8217;s AUD\/USD pair traded flat.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Trump-Xi Talks Loom; Iran Conflict Drags On<\/h2>\n\n\n\n<p>The Chinese yuan&#8217;s USD\/CNY pair traded flat near a three-year low hit in the previous session, outperforming regional currencies lately.<\/p>\n\n\n\n<p>Investors were also closely watching Trump&#8217;s meeting with Chinese President Xi Jinping in Beijing, which officially runs from May 13 to May 15, according to Chinese government announcements.<\/p>\n\n\n\n<p>The summit is expected to focus on trade, artificial intelligence, tariffs, rare earth exports, and the Iran conflict.<\/p>\n\n\n\n<p>Market sentiment remained fragile because of persistent tensions in the Middle East. Hopes for a breakthrough in U.S.-Iran negotiations weakened after U.S. President Donald Trump said a ceasefire proposal was &#8220;on life support&#8221; and criticized Tehran&#8217;s demands as unacceptable.<\/p>\n\n\n\n<p>The conflict has continued to disrupt oil flows through the Strait of Hormuz, keeping crude prices above $100 a barrel and adding to inflationary pressures globally.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways DXY firms: The dollar index held near a one-week high after rising 0.4% on Tuesday. CPI shock: U.S. consumer prices rose 3.8% year-on-year in April \u2014 the biggest annual increase since May 2023 and above expectations. Rate cut bets evaporate: Investors have priced out expectations of any Fed rate cut this year, with &hellip;<\/p>\n","protected":false},"author":9,"featured_media":31994,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6827,49,39,36],"tags":[6849,6851],"class_list":["post-127071","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-daily-economic-reports","category-economic-reports","category-global-stock-markets","category-market-updates","tag-asia","tag-stocks"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/127071","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=127071"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/127071\/revisions"}],"predecessor-version":[{"id":127072,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/127071\/revisions\/127072"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/31994"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=127071"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=127071"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=127071"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}