Most Asian currencies dipped on Monday, affected by rising geopolitical risks and a robust U.S. dollar after military action against Iranian nuclear sites escalated. The dollar experienced safe-haven inflows, while regional currencies struggled despite favorable domestic economic indicators.

Safe-Haven Demand Boosts Dollar

The dollar index climbed 0.3% during early Asian trading, building on the previous week’s gains. Markets flocked to the dollar following President Donald Trump’s claims about neutralizing Iran’s nuclear capabilities, although those assertions remain unproven.

Fear of a blockade in the Strait of Hormuz drove oil prices higher and curtailed investor appetite for risk. The Chinese yuan (USDCNY) rose by 0.1%, the Indian rupee (USDINR) increased by 0.2%, and the South Korean won (USDKRW) advanced by 0.7%, suggesting general investor caution in Asia.

Australian and Japanese Currencies Decline Despite Strong PMIs

• The Australian dollar (AUDUSD) decreased by 0.7% despite strong PMI data signaling a rebound in manufacturing and services.

• The Japanese yen (USDJPY) fell by 0.5%, missing out on typical safe-haven flows, indicating traders’ preference for dollar liquidity over traditional safe investments.

Investors also remained cautious ahead of Fed Chair Jerome Powell’s upcoming Congressional testimony, beginning Tuesday, as his comments will likely influence the future path of interest rates, especially following the Fed’s recent warnings about stagflation risks.

Currency Movements and Global Volatility Monitoring

To follow daily currency movements such as USDINR, USDCNY, USDJPY, and more, visit Entreprenerdly.com. This platform provides real-time updates, historical comparisons, and insights across global currency pairs.