The low U.S. inflation data has fueled speculation that the post-pandemic tightening cycle is nearing its conclusion.

Asian markets and treasuries gained on Thursday, while the dollar fell.

China trade statistics showed yuan-denominated exports climbed 3.7% in the first half of the year, while imports remained steady.

Hong Kong’s Hang Seng index jumped 2.1%, Australia’s resources-heavy shares rose 1.4%, and Japan’s Nikkei rose 1.2%. The US consumer inflation figure exceeded market expectations, with the Consumer Price Index (CPI) climbing 3% in June.

The Nasdaq and S&P 500 rose 1.2% and 0.7%, respectively.

The Fed leadership is expected to hike in two weeks before the Committee goes on extended pause.

The US dollar fell to a 15-month low against its main counterparts, easing pressure on developing market currencies and allowing Asian authorities more room to soften.

The euro reached a 15-month high, while the Japanese yen gained 6 yen on the dollar.

The Bank of Canada’s rate hiked by a quarter-point to 5%, and Canada risks tightening.

Oil prices reached a two-month high on the weak dollar, while gold remained at $1,957.09 per ounce.