Most Asian currencies remained steady on Monday as the U.S. dollar fell following Moody’s credit rating cut. Despite the dollar’s weakness, the yuan saw limited movement due to mixed economic signals from China.

Analysis of Currency Movements

The U.S. Dollar Index dropped 0.3% but it did not significantly boost support for the yuan, with mixed data from China adding to caution. Industrial output showed an unexpected increase, yet retail sales remain a concern, suggesting uneven recovery.

Highlights from the Region

• Yen Increases: The Japanese yen gained on speculation of quicker policy tightening by the Bank of Japan.
• ASEAN Currencies: Most remained flat, reflecting broader caution.
• Technology Pressures: The Korean won faced challenges amid tech sector anxieties, while the Taiwan dollar mirrored modest declines from peers.