Asian Currencies Gain Slight Momentum as Dollar Weakens
Asian Currencies on the Rise
Most Asian currencies saw a slight uptick on Friday as the dollar weakened, with investors awaiting key U.S. payrolls data that could impact interest rates.
Japanese Yen Strengthens
The Japanese yen strengthened further, moving away from 34-year lows, amidst suspected government intervention in currency markets. The dollar’s decline also provided some relief to other regional currencies, although concerns about prolonged high U.S. interest rates lingered.
USDJPY at Three-Week Low
The USDJPY pair dropped by 0.4% to 153.02, hitting a three-week low of 152.9. This week, the pair was set to lose 3.4% following its decline from 34-year highs, primarily due to Japanese government intervention. Traders identified the 160 level as a potential intervention point.
Broad Asian Currency Trends
Overall, Asian currencies showed some gains, benefitting from the dollar’s overnight slip. Positive Australian inflation figures led to a 0.2% rise in the Australian dollar’s pair. Meanwhile, trading volumes were subdued due to market holidays in Japan and China.
Impact on Other Currencies
The South Korean won and Singapore dollar pairs fell slightly, while the Indian rupee pair also dipped, though it remained below April’s record highs. The stage was set for the U.S. nonfarm payroll data release later in the day, which could influence market sentiment.
Focus on Nonfarm Payrolls
The dollar stabilized in Asian trading after recent losses, with all eyes on the upcoming nonfarm payrolls report. The Federal Reserve’s stance on interest rates remained unchanged, emphasizing the importance of a strong labor market in their decision-making process.
