world-economy

Middle East Conflict Pressures Global Central Banks on Currency Reserves

Central banks across Asia are reassessing asset holdings as geopolitical tensions in the Middle East create currency volatility. India's Reserve Bank may have adjusted gold reserves to stabilize foreign-exchange positions amid regional conflict spillovers, according to analysis of official data. South Korea's inflation accelerated to its fastest pace in over two years, prompting its central bank to maintain a hawkish monetary stance as economic headwinds from the Middle East persist across the region. The ripple effects extend beyond currency markets, with manufacturing activity showing mixed signals. China's private factory surveys outpaced official data in May, signaling resilience despite softer government readings. These pressures are forcing major Asian economies to balance inflation control with currency stability.