Dollar Swings Ahead of July CPI as Trump Asserts US Control Over Hormuz
The US dollar is experiencing mixed trading ahead of the July Consumer Price Index (CPI) release. While it's softer against most G10 currencies, sterling, the Australian dollar, and Japanese yen are slightly firmer. In contrast, the greenback is weaker against many emerging market currencies.
Notably, the People's Bank of China set the dollar's reference rate at a 3.5-year low. Meanwhile, the Mexican peso has reached its best level since the June 2024 election. The dollar also briefly touched a post-intervention high against the yen today, around JPY159.45.
President Trump recently claimed that the US has 'total control over the Hormuz Strait', calling it a 'Wall of Steel'. He emphasized that Iran lacks a navy and air force, with unpaid soldiers and an uncertain leadership. The President also criticized Iran's economic situation, highlighting 300% inflation and what he described as 'FAKE NEWS'.