Dollar eases, euro nears one-week high.
The U.S. dollar edged lower on Thursday while the euro climbed toward a one-week high ahead of the European Central Bank’s policy decision, as investors weighed the outlook for interest rates against renewed geopolitical tensions in the Middle East.
The US Dollar Index slipped marginally to 101.02, while the USD/EUR pair hovered near a one-week low before the ECB’s policy announcement later in the day.
The central bank is widely expected to leave interest rates unchanged, although markets will closely watch for guidance on whether policymakers remain open to another rate hike later this year as higher oil prices threaten to revive inflation pressures.
Fresh U.S. strikes on Iran and attacks by Yemen’s Iran-backed Houthis on oil tankers kept brent crude above $95 a barrel, underpinning demand for the dollar as a safe-haven currency.
Yen steadies near 40-year low; stronger Korea GDP lifts won, BoK hike bets
The USD/JPY pair traded at 163.1, keeping the yen near its weakest level since December 1986 after touching 163.23 earlier this week, as investors continued to assess the outlook for Bank of Japan policy and the possibility of official intervention.
Asia stocks rise on Alphabet AI spending boost.
Most Asian stocks advanced on Thursday as optimism over another surge in artificial intelligence spending lifted semiconductor shares, although gains were capped by soaring oil prices amid escalating tensions in the Middle East.
U.S. stock futures edged down on Thursday by 03:05 ET (07:05 GMT) after Wall Street closed slightly lower overnight.
Alphabet (NASDAQ:GOOGL) shares fell in after-hours trading, as investors responded to the company’s earnings release with a classic “sell the news” reaction despite a headline beat.
Alphabet hikes capital spending forecast; KOSPI rises
Investor sentiment in Asia was buoyed after Google parent Alphabet raised its annual capital spending forecast by an additional $15 billion, underscoring that the AI investment cycle remains intact despite concerns over mounting costs.
Oil prices rally, Brent crosses $96/bbl.
Oil prices climbed in Asian trading on Thursday, rising for a fifth straight session, as Iran-aligned Houthi militants claimed strikes on two Saudi oil tankers in the Red Sea, raising fears of deeper supply disruptions across key Middle East shipping routes.
As of 02:40 ET (06:40 GMT), Brent Oil Futures expiring in September rose 2.7% to $96.58 per barrel, while West Texas Intermediate (WTI) crude futures gained 1.8% to $88.44 per barrel.
Brent futures rose to their highest since June 8, when prices started falling on a temporary U.S.-Iran ceasefire agreement.
The Houthis said on Thursday they targeted the Saudi tankers ENCELA and LAYLIA after accusing them of violating a recently announced maritime blockade.
Saudi authorities have not confirmed any damage, but the attack marked the latest escalation in a conflict that has increasingly threatened energy infrastructure and global shipping.
The latest incident follows warnings earlier this week that the group would seek to block Saudi-linked shipping through the Bab el-Mandeb Strait, one of the world’s busiest energy transit chokepoints connecting the Red Sea with the Gulf of Aden.
Any sustained disruption could force tankers to reroute around southern Africa, lengthening voyages and increasing freight costs.
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