Key Takeaways:
Most Asian currencies weakened on Monday
Yen slid to a three-month low
Dollar rose to a near three-month high
Limited gains for regional currencies due to smaller U.S. interest rate cuts
Anticipation of key economic readings this week
Loss of parliamentary majority for Japan’s ruling party
USDJPY pair rose to highest level since late-July
Expected BOJ to keep rates unchanged
U.S. house price, GDP, and PCE price index data due this week
Chinese yuan rose to over two-month high
Australian dollar fell, focus on upcoming consumer inflation data
Indian rupee remained close to record highs
Yen slumps to three-month low following Japan’s election- Japan’s ruling coalition loses parliamentary majority, impacting future rate rises
- Possibility of government instability in Japan could affect central bank’s decisions
Dollar strengthens as US economy shows signs of strength and presidential election bets rise- Euro and Sterling down on the month, while US dollar index rises sharply
- Data-heavy week ahead with inflation readings, GDP data, and PMIs scheduled
- China’s industrial profits decline, yuan weakens against the dollar
Yen weakened after Japan’s election casts doubt on interest rate hikes- Uncertainty surrounding the election outcome impacts currency market
Investors closely monitoring political developments in Japan
Trump held a rally at Madison Square Garden
Trump delivered controversial and offensive remarks
The event was met with strong reactions and protests
Asian Currencies Fluctuate Following Japan’s Election, U.S. Economic Data in Focus
Asian currencies experienced a mixed performance on Monday, with most weakening as the Yen slid to a three-month low against the US Dollar, which rose to a near three-month high. The limited gains for regional currencies were attributed to expectations of smaller U.S. interest rate cuts, impacting investor sentiment.
Japan’s ruling party suffered a blow as it lost its parliamentary majority, leading to uncertainty in the currency markets. The USDJPY pair rose to its highest level since late-July, with investors closely monitoring political developments in Japan and the potential impact on future rate rises.
In China, the yuan rose to an over two-month high, while the Australian dollar fell ahead of upcoming consumer inflation data. The Indian rupee remained close to record highs, reflecting ongoing market uncertainties.
As the US economy continues to show signs of strength, the Dollar strengthened against other major currencies. With key economic readings scheduled this week, including inflation data, GDP figures, and PMIs, investors are anticipating further market movements.
Additionally, President Trump’s rally at Madison Square Garden was met with controversy as he delivered offensive remarks, sparking strong reactions and protests. The event, along with the ongoing political and economic developments, is likely to impact currency trends in the coming days.