Precise Investors Editorial Team
The yen was among the best-performing Asian currencies this week, as increased speculation over government intervention in the currency market saw traders largely look past fiscal concerns
Asian currencies dropped on Friday, but most currencies were set for gains this week.
The yen was among the best-performing Asian currencies this week, as increased speculation over government intervention in the currency market saw traders largely look past fiscal concerns surrounding Japan.
The yen’s USD/JPY pair added 0.2% on Friday but was trading down nearly 2.6% this week, its best performance since November 2024.
The yen’s strength came largely following a slew of hawkish comments on potential intervention from Japanese officials, which helped the currency firm past concerns over stretched fiscal spending under Prime Minister Sanae Takaichi.
The Australian dollar was also a strong performer this week, with the AUD/USD pair trading up 1% and at a three-year high following a string of hawkish comments from the Reserve Bank.
The won’s USD/KRW pair was down 1.4% this week, benefiting from increased capital inflows into equity markets as investors piled into chip stocks with exposure to the artificial intelligence trade.
The yuan’s USD/CNY pair advanced slightly on Friday but was trading down 0.4% this week, following several strong midpoint fixes from the People’s Bank. The yuan also remained close to a near three-year high hit earlier this week.
The Indian rupee’s USD/INR pair was flat for the week, while the Singapore dollar’s USD/SGD pair was down 0.6%.
The dollar index and dollar index futures gained slightly in Asian trade on Friday, with focus on upcoming consumer price index inflation data for January.
The dollar took some support from stronger-than-expected nonfarm payrolls data for January released earlier this week, although it was still trading down nearly 0.7% for the week.
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