Asian currencies experienced gains on Monday, buoyed by a weakening U.S. dollar as investors anticipated the commencement of trade negotiations between the United States and China in London. The dollar’s decline follows a brief rally spurred by strong U.S. employment data, with market attention now shifting to the upcoming discussions between U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng.
The Japanese yen appreciated, supported by a better-than-expected GDP report, while the euro, Swiss franc, and British pound also saw gains due to differing monetary policy expectations. Conversely, the Chinese yuan faced pressure amid concerns over deflation and slowing export growth.
Investors are also awaiting the release of U.S. Consumer Price Index (CPI) data, which will provide further insights into inflation trends and potential Federal Reserve policy adjustments.
