Suspected foreign-exchange intervention by Japanese authorities pushed the yen sharply higher, sending USD/JPY down 2.4% to 159.50 and below the 160.00 level. EUR/JPY and GBP/JPY also weakened markedly over the same period. In the U.S., second-quarter GDP grew 1.5%, missing expectations of 2.1% and adding to dollar softness. Markets widely expect the Bank of Japan to keep its overnight call rate unchanged at its Friday policy meeting, with greater attention on the outlook and guidance.

Silver (XAG/USD) has advanced for three straight sessions, returning above $57.00 in Asian trading, but it remains capped below a short-term descending trendline. Momentum signals appear to be stabilizing, with the MACD marginally positive and the RSI near 52. A sustained break above the trendline would shift focus to $59.00 and the 38.2% Fibonacci retracement level. If $56.83 gives way, the pair could slip toward the structural floor near $54.84.

Statistics New Zealand said CPI rose 4.1% year on year in Q2 2026, a two-year high that exceeded the prior 3.1% and market expectations of 4.0%, while quarterly inflation accelerated to 1.5% versus a 1.4% consensus. The hotter inflation print reinforced expectations that the Reserve Bank of New Zealand could deliver consecutive rate hikes, lifting NZD/USD to around 0.5865. Markets were also awaiting the US ADP employment report later in the day. Middle East tensions remained elevated, but the immediate catalyst for the move was the New Zealand inflation surprise.

Indonesia’s foreign direct investment rose 27.4% year on year in the second quarter, helping the rupiah post a fourth straight day of gains and pushing USD/IDR down to around 17,990. Separately, Iran has instructed Yemen’s Houthi militia to prepare to close the Red Sea shipping route in response to a potential U.S. strike on Iranian power infrastructure. Explosions were also reported in several locations, adding to concerns about risks to global oil supplies and spilling over into Indonesia’s foreign-exchange market.

The dollar rose against the yen, pushing USD/JPY to around 162.40, after the U.S. carried out strikes on Iran for a sixth consecutive night. Targets were reported near Qeshm Island by the Strait of Hormuz, as well as in Bandar Abbas and Bushehr, which hosts a nuclear power plant. Japan’s finance minister said authorities stand ready to intervene in currency markets whenever needed.

The Australian dollar rose to around 0.6950 against the U.S. dollar after hawkish remarks from RBA Assistant Governor Sarah Hunter. She said the central bank could tighten policy further if an oil shock lifts inflation expectations. The RBA has raised rates three times by 25 basis points this year, taking the cash rate to 4.35%, with markets pricing a 19% chance of a move to 4.60% at the August meeting. Minutes from the Fed’s June meeting showed most officials expect rates to end the year above current levels, though the path was not specified.