US Dollar
1. Bessant stated that US Treasury bond buybacks have not yet started, raising market doubts about the inconsistent policy signals.
2. Fidelity Funds increased its gold holdings, betting on a potential crisis in the Federal Reserve's credibility and a decline in the dollar's safe-haven status.
3. A prominent investment figure who previously mentored Bessant voiced his opposition: the Treasury's buyback of US Treasury bonds is a mistake.
4. How will the US Treasury bond buyback be paid for? Bessant is reportedly targeting the nearly $1 trillion General Treasury Account (TGA).
Japanese Yen
1. Former Bank of Japan official: Conditions for a Japanese interest rate hike next month are in place.
2. The Bank of Japan's core inflation indicator is above the target level, supporting expectations of a September rate hike.
3. Japanese Finance Minister Satsuki Katayama: The 2027 fiscal year budget will focus on key policies to promote economic growth. He will carefully discuss tax reform measures for Japanese government bonds targeting retail investors with relevant parties, including the Liberal Democratic Party.
Other
1. Reports indicate that the Reserve Bank of India sold dollars to support the Indian rupee.
2. OECD: G7 economic growth slowed to 0.3% in Q2.
3. Iranian currency fell nearly 10% in two weeks; central bank governor called the depreciation a "temporary phenomenon."
4. Reserve Bank of Australia meeting minutes: Several members believed inflation risks necessitate further interest rate hikes.
5. Trump slammed Canada for "taking advantage of the US," and tariffs on many goods will rise to 50% next year. Canada will announce its countermeasures to Trump's tariffs on Tuesday.
6. Reuters poll: 25 of 29 economists surveyed said the Philippine central bank will raise its benchmark interest rate by 25 basis points to 5.00% on August 27, and expects it to rise to 5.25% by the end of 2026.
7. Reuters poll: 18 of 35 economists expect the Bank of Korea to raise its benchmark interest rate to 3.00% on August 27, while the remaining economists believe the rate will remain unchanged at 2.75%.
8. The U.S. Treasury Department announced an expansion of secondary sanctions, targeting entities and countries worldwide that continue to conduct business with Iran. The sanctions cover digital assets, technology, gold, aviation, and shipping. The Treasury also imposed sanctions on nearly 60 entities, individuals, and vessels.
