Dollar sinks and global stocks extend record run
Dollar selling continued after the Wall Street Journal said the US president - who has been urging the Fed to cut rates faster - was toying with the idea of selecting Chair Jerome Powell's replacement in the next few months before his formal departure in May 2026.
It left the greenback down more than 10 per cent for 2025.
If it stays that way in the coming days it will be its biggest first half of a year fall since the early 1970s - effectively the era of free-floating currencies.
European shares edged higher again, buoyed by signs that the Israel-Iran ceasefire appeared to be holding and that European Union leaders were preparing to set their stance for US trade tariff talks ahead of a Trump-imposed deadline of July 9.
The region's flagship STOXX 600 index was up 0.2 per cent on Thursday while MSCI's record-high world stocks benchmark was up 0.4 per cent, leaving it almost eight per cent ahead for 2025.
The euro jumped 0.6 per cent to $US1.173, its strongest since 2021.
"The striking thing on the dollar trend of the last six weeks is that in almost any market regime the dollar is struggling to appreciate," State Street's Michael Metcalfe said.
"It seems to be in something of structural decline," he said, highlighting State Street data that investors were now the most negative they have been on the dollar - or "underweight" in banking speak - since the COVID pandemic.
Euro traders also took heart from the outcome of Wednesday's NATO summit that saw the bloc's members of the alliance agree to spend five per cent of output on defence - broken down into 3.5 per cent on troops and weapons and 1.5 per cent on looser, defence-related measures.
Overnight in Asia, Tokyo's Nikkei jumped 1.65 per cent to its highest level since January, while MSCI's broadest index of Asia-Pacific shares outside Japan finished slightly higher too.
In currency markets, the Swiss franc firmed to a decade-high while the Japanese yen also strengthened again to below 144 per dollar.
There are growing expectations that the Fed will soon be cutting US rates again following recent patchy data, but Trump's criticism of it for not moving quick enough has been escalating too.
He has repeatedly targeted Fed chief Powell, and his idea of naming a successor well before Powell leaves office would effectively create a shadow over the head of the US central bank that could undermine him.
The dollar index, which measures the US currency against six rivals, now sits at its lowest level since March 2022 following its slide in 2025.
The two-year US Treasury yield, which typically moves in step with interest rate expectations, was down 1.5 basis points at 3.764 per cent, its lowest level in seven weeks.
In commodities, oil prices rose on Thursday after their sharp slump following the Trump-brokered ceasefire early this week between longtime Middle East foes Israel and Iran.
Brent crude futures rose 0.37 per cent to $US67.93 a barrel, while US West Texas Intermediate crude gained 0.45 per cent to $US65.21.
The dollar has sunk to a three-year low while world stocks notched their second record high in three days as a report that Donald Trump was planning to choose the next Federal Reserve chief early fuelled fresh bets on US rate cuts.
Dollar selling continued after the Wall Street Journal said the US president - who has been urging the Fed to cut rates faster - was toying with the idea of selecting Chair Jerome Powell's replacement in the next few months before his formal departure in May 2026.
It left the greenback down more than 10 per cent for 2025.
If it stays that way in the coming days it will be its biggest first half of a year fall since the early 1970s - effectively the era of free-floating currencies.
European shares edged higher again, buoyed by signs that the Israel-Iran ceasefire appeared to be holding and that European Union leaders were preparing to set their stance for US trade tariff talks ahead of a Trump-imposed deadline of July 9.
The region's flagship STOXX 600 index was up 0.2 per cent on Thursday while MSCI's record-high world stocks benchmark was up 0.4 per cent, leaving it almost eight per cent ahead for 2025.
The euro jumped 0.6 per cent to $US1.173, its strongest since 2021.
"The striking thing on the dollar trend of the last six weeks is that in almost any market regime the dollar is struggling to appreciate," State Street's Michael Metcalfe said.
"It seems to be in something of structural decline," he said, highlighting State Street data that investors were now the most negative they have been on the dollar - or "underweight" in banking speak - since the COVID pandemic.
Euro traders also took heart from the outcome of Wednesday's NATO summit that saw the bloc's members of the alliance agree to spend five per cent of output on defence - broken down into 3.5 per cent on troops and weapons and 1.5 per cent on looser, defence-related measures.
Overnight in Asia, Tokyo's Nikkei jumped 1.65 per cent to its highest level since January, while MSCI's broadest index of Asia-Pacific shares outside Japan finished slightly higher too.
In currency markets, the Swiss franc firmed to a decade-high while the Japanese yen also strengthened again to below 144 per dollar.
There are growing expectations that the Fed will soon be cutting US rates again following recent patchy data, but Trump's criticism of it for not moving quick enough has been escalating too.
He has repeatedly targeted Fed chief Powell, and his idea of naming a successor well before Powell leaves office would effectively create a shadow over the head of the US central bank that could undermine him.
The dollar index, which measures the US currency against six rivals, now sits at its lowest level since March 2022 following its slide in 2025.
The two-year US Treasury yield, which typically moves in step with interest rate expectations, was down 1.5 basis points at 3.764 per cent, its lowest level in seven weeks.
In commodities, oil prices rose on Thursday after their sharp slump following the Trump-brokered ceasefire early this week between longtime Middle East foes Israel and Iran.
Brent crude futures rose 0.37 per cent to $US67.93 a barrel, while US West Texas Intermediate crude gained 0.45 per cent to $US65.21.
The dollar has sunk to a three-year low while world stocks notched their second record high in three days as a report that Donald Trump was planning to choose the next Federal Reserve chief early fuelled fresh bets on US rate cuts.
Dollar selling continued after the Wall Street Journal said the US president - who has been urging the Fed to cut rates faster - was toying with the idea of selecting Chair Jerome Powell's replacement in the next few months before his formal departure in May 2026.
It left the greenback down more than 10 per cent for 2025.
If it stays that way in the coming days it will be its biggest first half of a year fall since the early 1970s - effectively the era of free-floating currencies.
European shares edged higher again, buoyed by signs that the Israel-Iran ceasefire appeared to be holding and that European Union leaders were preparing to set their stance for US trade tariff talks ahead of a Trump-imposed deadline of July 9.
The region's flagship STOXX 600 index was up 0.2 per cent on Thursday while MSCI's record-high world stocks benchmark was up 0.4 per cent, leaving it almost eight per cent ahead for 2025.
The euro jumped 0.6 per cent to $US1.173, its strongest since 2021.
"The striking thing on the dollar trend of the last six weeks is that in almost any market regime the dollar is struggling to appreciate," State Street's Michael Metcalfe said.
"It seems to be in something of structural decline," he said, highlighting State Street data that investors were now the most negative they have been on the dollar - or "underweight" in banking speak - since the COVID pandemic.
Euro traders also took heart from the outcome of Wednesday's NATO summit that saw the bloc's members of the alliance agree to spend five per cent of output on defence - broken down into 3.5 per cent on troops and weapons and 1.5 per cent on looser, defence-related measures.
Overnight in Asia, Tokyo's Nikkei jumped 1.65 per cent to its highest level since January, while MSCI's broadest index of Asia-Pacific shares outside Japan finished slightly higher too.
In currency markets, the Swiss franc firmed to a decade-high while the Japanese yen also strengthened again to below 144 per dollar.
There are growing expectations that the Fed will soon be cutting US rates again following recent patchy data, but Trump's criticism of it for not moving quick enough has been escalating too.
He has repeatedly targeted Fed chief Powell, and his idea of naming a successor well before Powell leaves office would effectively create a shadow over the head of the US central bank that could undermine him.
The dollar index, which measures the US currency against six rivals, now sits at its lowest level since March 2022 following its slide in 2025.
The two-year US Treasury yield, which typically moves in step with interest rate expectations, was down 1.5 basis points at 3.764 per cent, its lowest level in seven weeks.
In commodities, oil prices rose on Thursday after their sharp slump following the Trump-brokered ceasefire early this week between longtime Middle East foes Israel and Iran.
Brent crude futures rose 0.37 per cent to $US67.93 a barrel, while US West Texas Intermediate crude gained 0.45 per cent to $US65.21.
The dollar has sunk to a three-year low while world stocks notched their second record high in three days as a report that Donald Trump was planning to choose the next Federal Reserve chief early fuelled fresh bets on US rate cuts.
Dollar selling continued after the Wall Street Journal said the US president - who has been urging the Fed to cut rates faster - was toying with the idea of selecting Chair Jerome Powell's replacement in the next few months before his formal departure in May 2026.
It left the greenback down more than 10 per cent for 2025.
If it stays that way in the coming days it will be its biggest first half of a year fall since the early 1970s - effectively the era of free-floating currencies.
European shares edged higher again, buoyed by signs that the Israel-Iran ceasefire appeared to be holding and that European Union leaders were preparing to set their stance for US trade tariff talks ahead of a Trump-imposed deadline of July 9.
The region's flagship STOXX 600 index was up 0.2 per cent on Thursday while MSCI's record-high world stocks benchmark was up 0.4 per cent, leaving it almost eight per cent ahead for 2025.
The euro jumped 0.6 per cent to $US1.173, its strongest since 2021.
"The striking thing on the dollar trend of the last six weeks is that in almost any market regime the dollar is struggling to appreciate," State Street's Michael Metcalfe said.
"It seems to be in something of structural decline," he said, highlighting State Street data that investors were now the most negative they have been on the dollar - or "underweight" in banking speak - since the COVID pandemic.
Euro traders also took heart from the outcome of Wednesday's NATO summit that saw the bloc's members of the alliance agree to spend five per cent of output on defence - broken down into 3.5 per cent on troops and weapons and 1.5 per cent on looser, defence-related measures.
Overnight in Asia, Tokyo's Nikkei jumped 1.65 per cent to its highest level since January, while MSCI's broadest index of Asia-Pacific shares outside Japan finished slightly higher too.
In currency markets, the Swiss franc firmed to a decade-high while the Japanese yen also strengthened again to below 144 per dollar.
There are growing expectations that the Fed will soon be cutting US rates again following recent patchy data, but Trump's criticism of it for not moving quick enough has been escalating too.
He has repeatedly targeted Fed chief Powell, and his idea of naming a successor well before Powell leaves office would effectively create a shadow over the head of the US central bank that could undermine him.
The dollar index, which measures the US currency against six rivals, now sits at its lowest level since March 2022 following its slide in 2025.
The two-year US Treasury yield, which typically moves in step with interest rate expectations, was down 1.5 basis points at 3.764 per cent, its lowest level in seven weeks.
In commodities, oil prices rose on Thursday after their sharp slump following the Trump-brokered ceasefire early this week between longtime Middle East foes Israel and Iran.
Brent crude futures rose 0.37 per cent to $US67.93 a barrel, while US West Texas Intermediate crude gained 0.45 per cent to $US65.21.
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Domino's Pizza CEO Mark van Dyck calls it quits after eight months as share prices fall dramatically leaving company in strife
The CEO and managing director of Domino's, Mark van Dyck, has made a shock departure from the popular food chain after just eight months at the helm. His resignation comes as Domino's shares plummeted to 17.6 per cent since the stock market opened at 10am, adding to the company's share losses of 50 per cent over the last 12 months. Mr van Dyck is due to leave the company on December 23, after he replaced Domino's long-term chief executive and managing director Don Meij in November last year. The reason behind Mr van Dyck's departure is not yet known. Chairman Jack Cowin, 83, will now take over executive duties of the multi-billion-dollar pizza chain. 'To support a smooth and effective transition, chairman Jack Cowin will assume the role of executive chair on an interim basis, effective immediately, to work with Mr van Dyck and the executive team over the coming months,' the company said on Wednesday. 'Mark has made a valuable contribution to Domino's during a period of significant operational reset. With the strategic foundations now firmly in place, this transition enables a new CEO to take Domino's to its next stage of growth,' Cowin added. Domino's was in the process of a major business restructure much of which had been led by Mr van Dyck after he stepped into the leadership role. Those plans have now been left in disarray as he exits the company. In February Domino's fronted the ASX and announced it would be shutting down 205 of its unprofitable stores globally in a bid to improve the company's long-term profitability. The move was expected to save the struggling company approximately $15.5 million, but stock fell 12 per cent on the same day of the announcement. At the time Mr van Dyck said the "decisive action" was necessary for the Domino's to reach its "potential". 'Some of our Covid-period expansion resulted in stores that simply weren't optimal based on our current customer proposition, and removing them will strengthen our network," he said previously. 'Where change is required, we are acting quickly and transparently. 'Our priority remains clear, creating value for customers, franchise partners, and shareholders." Domino's has suffered considerable losses in recent years following Covid-19 and its expansion of franchises into Japan which was not met with heightened popularity as expected. Following his resignation, Van Dyk said: "It has been a privilege to lead Domino's through a transformative period." 'With a clear strategy and strong team in place, I believe the time will be right at the end of this calendar year to hand over to the next CEO. My focus in the months ahead will be on supporting a smooth transition.'
The Advertiser
an hour ago
- The Advertiser
Senate passes massive US tax cut and spending bill
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"This is the largest assault on American healthcare in history," House Democratic Leader Hakeem Jeffries told reporters. "It's the largest assault on nutrition in American history." US Senate Republicans have passed President Donald Trump's massive tax-cut and spending bill by the narrowest of margins, advancing a package that would slash taxes, reduce social safety net programs and boost military and immigration enforcement spending while adding $US3.3 trillion ($A5 trillion) to the national debt. The legislation now heads to the House of Representatives for possible final approval, though a handful of Republicans there have already voiced opposition to some of the Senate provisions. Trump wants to sign it into law by the July 4 Independence Day holiday, and House Speaker Mike Johnson said he aimed to meet that deadline. 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The vote followed an all-night debate in which Republicans grappled with the bill's price tag and its impact on the US healthcare system. The vote in the House, where Republicans hold a 220-212 majority, is likely to be close. A White House official told reporters that Trump would be "deeply involved" in pushing House Republicans to approve the bill. "It's a great bill. There is something for everyone," Trump said at an event in Florida on Tuesday. "And I think it's going to go very nicely in the House." Republicans have struggled to balance conservatives' demands for deeper spending cuts to reduce the impact on the deficit with moderate lawmakers' concerns that the Medicaid cuts could hurt their constituents, including service cutbacks in rural areas. A group of more moderate House Republicans, especially those who represent lower-income areas, have objected to the steeper Medicaid cuts in the Senate's plan. The legislation has also drawn criticism from billionaire Elon Musk, the former Trump ally who has railed against the bill's enormous cost and vowed to back challengers to Republican lawmakers in next year's midterm elections. House Democrats are expected to remain unanimously opposed to the bill. "This is the largest assault on American healthcare in history," House Democratic Leader Hakeem Jeffries told reporters. "It's the largest assault on nutrition in American history." US Senate Republicans have passed President Donald Trump's massive tax-cut and spending bill by the narrowest of margins, advancing a package that would slash taxes, reduce social safety net programs and boost military and immigration enforcement spending while adding $US3.3 trillion ($A5 trillion) to the national debt. The legislation now heads to the House of Representatives for possible final approval, though a handful of Republicans there have already voiced opposition to some of the Senate provisions. Trump wants to sign it into law by the July 4 Independence Day holiday, and House Speaker Mike Johnson said he aimed to meet that deadline. The measure would extend Trump's 2017 tax cuts, give new tax breaks for income from tips and overtime pay and increase spending on the military and immigration enforcement. It also would cut about $US930 billion ($A1.4 trillion) of spending on the Medicaid health program and food aid for low-income Americans, and repeal many of Democratic former president Joe Biden's green-energy incentives. The legislation, which has exposed Republican divides over the nation's fast-growing $US36.2 trillion debt, would raise the federal government's self-imposed debt ceiling by $US5 trillion. Congress must raise the cap in the coming months or risk a devastating default. The Senate passed the measure in a 51-50 vote with Vice President JD Vance breaking a tie after three Republicans - Thom Tillis of North Carolina, Susan Collins of Maine and Rand Paul of Kentucky - joined all 47 Democrats in voting against the bill. The vote followed an all-night debate in which Republicans grappled with the bill's price tag and its impact on the US healthcare system. The vote in the House, where Republicans hold a 220-212 majority, is likely to be close. A White House official told reporters that Trump would be "deeply involved" in pushing House Republicans to approve the bill. "It's a great bill. There is something for everyone," Trump said at an event in Florida on Tuesday. "And I think it's going to go very nicely in the House." Republicans have struggled to balance conservatives' demands for deeper spending cuts to reduce the impact on the deficit with moderate lawmakers' concerns that the Medicaid cuts could hurt their constituents, including service cutbacks in rural areas. A group of more moderate House Republicans, especially those who represent lower-income areas, have objected to the steeper Medicaid cuts in the Senate's plan. The legislation has also drawn criticism from billionaire Elon Musk, the former Trump ally who has railed against the bill's enormous cost and vowed to back challengers to Republican lawmakers in next year's midterm elections. House Democrats are expected to remain unanimously opposed to the bill. "This is the largest assault on American healthcare in history," House Democratic Leader Hakeem Jeffries told reporters. "It's the largest assault on nutrition in American history." US Senate Republicans have passed President Donald Trump's massive tax-cut and spending bill by the narrowest of margins, advancing a package that would slash taxes, reduce social safety net programs and boost military and immigration enforcement spending while adding $US3.3 trillion ($A5 trillion) to the national debt. The legislation now heads to the House of Representatives for possible final approval, though a handful of Republicans there have already voiced opposition to some of the Senate provisions. Trump wants to sign it into law by the July 4 Independence Day holiday, and House Speaker Mike Johnson said he aimed to meet that deadline. The measure would extend Trump's 2017 tax cuts, give new tax breaks for income from tips and overtime pay and increase spending on the military and immigration enforcement. It also would cut about $US930 billion ($A1.4 trillion) of spending on the Medicaid health program and food aid for low-income Americans, and repeal many of Democratic former president Joe Biden's green-energy incentives. The legislation, which has exposed Republican divides over the nation's fast-growing $US36.2 trillion debt, would raise the federal government's self-imposed debt ceiling by $US5 trillion. Congress must raise the cap in the coming months or risk a devastating default. The Senate passed the measure in a 51-50 vote with Vice President JD Vance breaking a tie after three Republicans - Thom Tillis of North Carolina, Susan Collins of Maine and Rand Paul of Kentucky - joined all 47 Democrats in voting against the bill. The vote followed an all-night debate in which Republicans grappled with the bill's price tag and its impact on the US healthcare system. The vote in the House, where Republicans hold a 220-212 majority, is likely to be close. A White House official told reporters that Trump would be "deeply involved" in pushing House Republicans to approve the bill. "It's a great bill. There is something for everyone," Trump said at an event in Florida on Tuesday. "And I think it's going to go very nicely in the House." Republicans have struggled to balance conservatives' demands for deeper spending cuts to reduce the impact on the deficit with moderate lawmakers' concerns that the Medicaid cuts could hurt their constituents, including service cutbacks in rural areas. A group of more moderate House Republicans, especially those who represent lower-income areas, have objected to the steeper Medicaid cuts in the Senate's plan. The legislation has also drawn criticism from billionaire Elon Musk, the former Trump ally who has railed against the bill's enormous cost and vowed to back challengers to Republican lawmakers in next year's midterm elections. House Democrats are expected to remain unanimously opposed to the bill. "This is the largest assault on American healthcare in history," House Democratic Leader Hakeem Jeffries told reporters. "It's the largest assault on nutrition in American history."
The Advertiser
an hour ago
- The Advertiser
Asian stocks waver, dollar frail on rates and tariffs
Asian stocks have slipped and the dollar languished near three-and-a-half-year lows as investors weigh the prospect of US interest rate cuts and the scramble for trade deals ahead of President Donald Trump's July 9 deadline for tariffs. Trump said he was not considering extending the July 9 deadline for countries to negotiate trade deals with the United States, and cast doubts again that an agreement could be reached with Japan, although he expects a deal with India. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.23 per cent in early trading on Wednesday, inching away from the November 2021 top it touched last week. Japan's Nikkei fell 0.78 per cent, dragged by tech stocks. Tech-heavy Taiwan stocks and South Korea's Kospi Index also fell after US tech firms were hit hard following a strong rally in June. 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"The 'One Big Beautiful Bill' Act (OBBBA) and trade developments also have the potential to further weaken the USD if they undermine investor confidence about the U.S. economy." Investor focus over the last few days has pivoted to the progress of Trump's massive tax-and-spending bill, which is expected to add $US3.3 trillion to the national debt. The legislation heads to the House of Representatives for possible final approval after US Senate Republicans passed it by the narrowest of margins. The bill has stoked fiscal worries but the reaction was relatively muted after it passed the Senate. The benchmark US 10-year yields were steady at 4.245 per cent having touched a two-month low in the previous session. Aninda Mitra, head of Asia macro strategy at BNY Investment Institute, said the legislation "hard wires" a steady deterioration of the fiscal position and the debt trajectory of the US government. "The near-term impact is mostly in the price, but the uncertainty factor could keep term premia elevated. We don't think long-term yields will fall back materially in the 6-12 month horizon." The fiscal worries, trade uncertainties and the US rate path trajectory have all led investors to flee US assets and look for alternatives. Investors worry that Trump's chaotic trade policies could hit US economic growth. That has left the dollar unloved, with the greenback down over 10 per cent for the year in its worst first half performance since the 1970s. The dollar index, which measures the US currency against six rivals, was at 96.649, near its lowest since March 2022. In commodities, spot gold eased to $US3,332.19 per ounce, after surging one per cent in the previous session. The yellow metal is up 27 per cent this year on safe-haven flows. Asian stocks have slipped and the dollar languished near three-and-a-half-year lows as investors weigh the prospect of US interest rate cuts and the scramble for trade deals ahead of President Donald Trump's July 9 deadline for tariffs. Trump said he was not considering extending the July 9 deadline for countries to negotiate trade deals with the United States, and cast doubts again that an agreement could be reached with Japan, although he expects a deal with India. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.23 per cent in early trading on Wednesday, inching away from the November 2021 top it touched last week. Japan's Nikkei fell 0.78 per cent, dragged by tech stocks. Tech-heavy Taiwan stocks and South Korea's Kospi Index also fell after US tech firms were hit hard following a strong rally in June. Data on Tuesday showed the US labour market remained resilient with a rise in job openings for May, sharpening the focus on the payrolls report due on Thursday as investors try to gauge when the Federal Reserve is likely to cut rates next. Fed Chair Jerome Powell, under fire from Trump to cut rates immediately, reiterated that the US central bank plans to "wait and learn more" about the impact of tariffs on inflation before lowering interest rates. Traders are pricing in 64 basis points of cuts this year from the Fed with the odds of a move in July at 21 per cent. That maintained a bearish bias on the dollar. The euro last bought $US1.1793, just below the three-and-half-year high it touched on Tuesday. The yen was steady at 143.52 per dollar. "Any disappointing economic data can prompt further dovish repricing of FOMC rate cuts and another round of USD selling," said Carol Kong, a currency strategist at Commonwealth Bank of Australia. "The 'One Big Beautiful Bill' Act (OBBBA) and trade developments also have the potential to further weaken the USD if they undermine investor confidence about the U.S. economy." Investor focus over the last few days has pivoted to the progress of Trump's massive tax-and-spending bill, which is expected to add $US3.3 trillion to the national debt. The legislation heads to the House of Representatives for possible final approval after US Senate Republicans passed it by the narrowest of margins. The bill has stoked fiscal worries but the reaction was relatively muted after it passed the Senate. The benchmark US 10-year yields were steady at 4.245 per cent having touched a two-month low in the previous session. Aninda Mitra, head of Asia macro strategy at BNY Investment Institute, said the legislation "hard wires" a steady deterioration of the fiscal position and the debt trajectory of the US government. "The near-term impact is mostly in the price, but the uncertainty factor could keep term premia elevated. We don't think long-term yields will fall back materially in the 6-12 month horizon." The fiscal worries, trade uncertainties and the US rate path trajectory have all led investors to flee US assets and look for alternatives. Investors worry that Trump's chaotic trade policies could hit US economic growth. That has left the dollar unloved, with the greenback down over 10 per cent for the year in its worst first half performance since the 1970s. The dollar index, which measures the US currency against six rivals, was at 96.649, near its lowest since March 2022. In commodities, spot gold eased to $US3,332.19 per ounce, after surging one per cent in the previous session. The yellow metal is up 27 per cent this year on safe-haven flows. Asian stocks have slipped and the dollar languished near three-and-a-half-year lows as investors weigh the prospect of US interest rate cuts and the scramble for trade deals ahead of President Donald Trump's July 9 deadline for tariffs. Trump said he was not considering extending the July 9 deadline for countries to negotiate trade deals with the United States, and cast doubts again that an agreement could be reached with Japan, although he expects a deal with India. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.23 per cent in early trading on Wednesday, inching away from the November 2021 top it touched last week. Japan's Nikkei fell 0.78 per cent, dragged by tech stocks. Tech-heavy Taiwan stocks and South Korea's Kospi Index also fell after US tech firms were hit hard following a strong rally in June. Data on Tuesday showed the US labour market remained resilient with a rise in job openings for May, sharpening the focus on the payrolls report due on Thursday as investors try to gauge when the Federal Reserve is likely to cut rates next. Fed Chair Jerome Powell, under fire from Trump to cut rates immediately, reiterated that the US central bank plans to "wait and learn more" about the impact of tariffs on inflation before lowering interest rates. Traders are pricing in 64 basis points of cuts this year from the Fed with the odds of a move in July at 21 per cent. That maintained a bearish bias on the dollar. The euro last bought $US1.1793, just below the three-and-half-year high it touched on Tuesday. The yen was steady at 143.52 per dollar. "Any disappointing economic data can prompt further dovish repricing of FOMC rate cuts and another round of USD selling," said Carol Kong, a currency strategist at Commonwealth Bank of Australia. "The 'One Big Beautiful Bill' Act (OBBBA) and trade developments also have the potential to further weaken the USD if they undermine investor confidence about the U.S. economy." Investor focus over the last few days has pivoted to the progress of Trump's massive tax-and-spending bill, which is expected to add $US3.3 trillion to the national debt. The legislation heads to the House of Representatives for possible final approval after US Senate Republicans passed it by the narrowest of margins. The bill has stoked fiscal worries but the reaction was relatively muted after it passed the Senate. The benchmark US 10-year yields were steady at 4.245 per cent having touched a two-month low in the previous session. Aninda Mitra, head of Asia macro strategy at BNY Investment Institute, said the legislation "hard wires" a steady deterioration of the fiscal position and the debt trajectory of the US government. "The near-term impact is mostly in the price, but the uncertainty factor could keep term premia elevated. We don't think long-term yields will fall back materially in the 6-12 month horizon." The fiscal worries, trade uncertainties and the US rate path trajectory have all led investors to flee US assets and look for alternatives. Investors worry that Trump's chaotic trade policies could hit US economic growth. That has left the dollar unloved, with the greenback down over 10 per cent for the year in its worst first half performance since the 1970s. The dollar index, which measures the US currency against six rivals, was at 96.649, near its lowest since March 2022. In commodities, spot gold eased to $US3,332.19 per ounce, after surging one per cent in the previous session. The yellow metal is up 27 per cent this year on safe-haven flows. Asian stocks have slipped and the dollar languished near three-and-a-half-year lows as investors weigh the prospect of US interest rate cuts and the scramble for trade deals ahead of President Donald Trump's July 9 deadline for tariffs. Trump said he was not considering extending the July 9 deadline for countries to negotiate trade deals with the United States, and cast doubts again that an agreement could be reached with Japan, although he expects a deal with India. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.23 per cent in early trading on Wednesday, inching away from the November 2021 top it touched last week. Japan's Nikkei fell 0.78 per cent, dragged by tech stocks. Tech-heavy Taiwan stocks and South Korea's Kospi Index also fell after US tech firms were hit hard following a strong rally in June. Data on Tuesday showed the US labour market remained resilient with a rise in job openings for May, sharpening the focus on the payrolls report due on Thursday as investors try to gauge when the Federal Reserve is likely to cut rates next. Fed Chair Jerome Powell, under fire from Trump to cut rates immediately, reiterated that the US central bank plans to "wait and learn more" about the impact of tariffs on inflation before lowering interest rates. Traders are pricing in 64 basis points of cuts this year from the Fed with the odds of a move in July at 21 per cent. That maintained a bearish bias on the dollar. The euro last bought $US1.1793, just below the three-and-half-year high it touched on Tuesday. The yen was steady at 143.52 per dollar. "Any disappointing economic data can prompt further dovish repricing of FOMC rate cuts and another round of USD selling," said Carol Kong, a currency strategist at Commonwealth Bank of Australia. "The 'One Big Beautiful Bill' Act (OBBBA) and trade developments also have the potential to further weaken the USD if they undermine investor confidence about the U.S. economy." Investor focus over the last few days has pivoted to the progress of Trump's massive tax-and-spending bill, which is expected to add $US3.3 trillion to the national debt. The legislation heads to the House of Representatives for possible final approval after US Senate Republicans passed it by the narrowest of margins. The bill has stoked fiscal worries but the reaction was relatively muted after it passed the Senate. The benchmark US 10-year yields were steady at 4.245 per cent having touched a two-month low in the previous session. Aninda Mitra, head of Asia macro strategy at BNY Investment Institute, said the legislation "hard wires" a steady deterioration of the fiscal position and the debt trajectory of the US government. "The near-term impact is mostly in the price, but the uncertainty factor could keep term premia elevated. We don't think long-term yields will fall back materially in the 6-12 month horizon." The fiscal worries, trade uncertainties and the US rate path trajectory have all led investors to flee US assets and look for alternatives. Investors worry that Trump's chaotic trade policies could hit US economic growth. That has left the dollar unloved, with the greenback down over 10 per cent for the year in its worst first half performance since the 1970s. The dollar index, which measures the US currency against six rivals, was at 96.649, near its lowest since March 2022. In commodities, spot gold eased to $US3,332.19 per ounce, after surging one per cent in the previous session. The yellow metal is up 27 per cent this year on safe-haven flows.
