Most Asian currencies traded in a narrow range on Monday, with the U.S. dollar slightly softer amid renewed U.S.–China trade uncertainty and dovish signals from Fed Governor Christopher Waller.
USD Under Pressure on Rate-Cut Hints
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Fed Governor Waller said he remains open to cutting interest rates later this year if economic conditions warrant, nudging the dollar lower.
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Weak Chinese PMI data (released over the weekend) also chipped away at regional risk sentiment, even though mainland markets were closed for a holiday, limiting volume.
To monitor these economic releases and Fed commentary, use the Economics Calendar API, which flags PMI prints, Fed speeches, and tariff-related announcements.
Yen Strengthens as Safe Haven
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USD/JPY fell 0.1%, driven by cautious positioning ahead of high-level trade talks between Tokyo and Washington.
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Heightened risk aversion—spurred by Trump’s threat to double steel and aluminum tariffs to 50%—drew flows into the Japanese yen, a traditional safe-haven currency.
Real-time FX rates and intraday moves for JPY and other majors can be tracked via the Forex Daily API, which provides updated cross-currency pairs and volume data.
Yuan Weakness Amid Tariff Spat
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While onshore markets were closed, the offshore yuan (USD/CNH) rose 0.2%, reflecting underlying yuan weakness as traders assessed fresh trade tensions.
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China firmly rejected Trump’s weekend claims that it violated the Geneva trade deal, deepening the rhetoric even though both sides agreed to cut tariffs drastically in May.
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Ongoing disputes—U.S. chip controls versus China’s rare-earth export restrictions—continue to fuel volatility in the yuan.
Key Takeaways for Investors
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Trade Talks in Focus: Keep an eye on upcoming U.S.–Japan and U.S.–China meetings. Any progress could alleviate risk-off flows and lift Asian FX.
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Fed Rate Outlook: Further dovish Fed signals may keep the dollar under pressure, providing room for Asian currencies to firm.
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PMI and PMI-Adjacent Data: A repeat of weak PMI readings would exacerbate pro-cyclical pressure and boost safe havens like the yen.
