Overview
- Iranian drones and missiles struck Kuwait International Airport on Wednesday, causing damage, injuring dozens and forcing a suspension of flights while U.S. forces carried out strikes near the Strait of Hormuz.
- The U.S. dollar strengthened to about a two‑month peak as investors moved money into assets seen as safer, with the dollar index near 99.47 on renewed regional risk and stronger U.S. activity readings.
- U.S. data showing 122,000 private payroll additions in May and an ISM services reading of 54.5 reinforced market bets that the Federal Reserve will hold rates steady.
- The Japanese yen hovered close to the 160 per dollar level that often triggers intervention, and Bank of Japan Governor Kazuo Ueda signaled policymakers may need to consider tightening if inflation risks persist.
- Risk assets fell as oil rose and cryptocurrencies slid to four‑month lows, and markets are now positioned ahead of Friday’s nonfarm payrolls report for clues on whether central banks will change course.