Iran's Islamic Revolutionary Guard Corps (IRGC) navy has reportedly closed the Strait of Hormuz, the world's most vital oil chokepoint, until further notice, according to Iranian state media. The action raises immediate concerns over a major disruption to global energy supplies.
South Korea has launched near-continuous onshore trading of its currency against the U.S. dollar, a major reform aimed at improving foreign investor access and securing an upgrade to developed market status from index provider MSCI.
Taiwan's central bank has confirmed it intervened in the foreign exchange market in June, a move that contributed to a decline in the nation's foreign reserves to $597.15 billion. Officials cited a stronger U.S. dollar as a key factor.
The U.S. dollar was little changed on Monday after posting its worst session since late April, as investors look ahead to the release of Federal Reserve meeting minutes for clues on future interest rate policy. The Japanese yen weakened, remaining in territory that has previously triggered intervention.
The Japanese yen weakened toward the 162-per-dollar level as traders tested the resolve of Japanese authorities, whose lack of recent intervention has emboldened sellers.
Italy's Treasury has appointed BofA, Citigroup, Goldman Sachs, and Morgan Stanley to manage an upcoming syndicated sale of U.S. dollar-denominated bonds with maturities in 2031, 2036, and 2056.
The rand weakened as heightened geopolitical risk in the Middle East drove a flight to safety, putting pressure on emerging-market currencies. Oil prices surged over 5% on the news.
The Canadian dollar strengthened against its U.S. counterpart after June employment data showed the economy added 18,200 jobs, far exceeding analyst expectations. The report reinforces the outlook for the Bank of Canada to hold interest rates steady.
The South African rand fell 0.5% to 16.3850 per dollar, its weakest in a week, as escalating U.S.-Iran tensions prompted a flight from riskier emerging-market assets.
