Asian Currencies Move Mixed Against US Dollar at Week’s Start
Swan.my.id - Jakarta, Asian currencies moved in different directions against the US dollar in early trading on Monday, September 7, 2026. Four of 10 monitored Asian currencies strengthened, while the other six weakened.
Refinitiv data at 09:15 WIB showed the Taiwan dollar recording the strongest gain in the region. The currency rose 0.09% to TWD 31.592 per US dollar.
The Japanese yen and South Korean won each advanced 0.04%. The yen traded at JPY 156.15 per US dollar, while the won stood at KRW 1,343.67 per US dollar. The Vietnamese dong also edged higher by 0.01% to VND 26,052 per US dollar.
Asian Currencies Face Pressure from Regional Movers
On the weaker side, the Philippine peso posted the sharpest decline in early trading. It fell 0.25% to PHP 62.751 per US dollar.
The Thai baht followed with a 0.15% decline to THB 32.93 per US dollar. The Indonesian rupiah weakened 0.11% to Rp17,659 per US dollar.
The Malaysian ringgit also slipped 0.10% to MYR 4.045 per US dollar. Meanwhile, the Singapore dollar declined 0.06% to SGD 1.267 per US dollar, while the Chinese yuan edged down 0.02% to CNY 6.712 per US dollar.
Dollar Index Remains under Pressure
The mixed movement came amid developments surrounding the US dollar. At the same time, the US Dollar Index, or DXY, declined 0.02% to 99.153.
The greenback remained under pressure at the start of the week, even as markets increased their expectations for a US Federal Reserve rate hike. The dollar struggled to maintain its gains after stronger-than-expected US employment data were released on the previous Friday.
According to market expectations tracked through CME FedWatch, traders now see about a 57% probability that the Federal Reserve will raise interest rates this month. The expectation increased after the release of stronger-than-expected nonfarm payrolls data.
The US economy added 162,000 jobs in August, well above the expectation of 56,000. The unemployment rate remained at 4.1%.
However, the dollar has still found it difficult to extend its gains. Concerns about rising US debt, policy uncertainty, and changing sentiment toward the Japanese yen have limited the greenback’s momentum.
Markets Await US Inflation Data
Markets are also watching US inflation data scheduled for release on Friday. The figures will become an important consideration before the Federal Reserve holds its policy meeting this month.
“Hot CPI data would almost certainly lock in a September rate hike and support a stronger dollar. Conversely, cooler figures would strengthen the case for holding rates and leave the dollar vulnerable to a repricing of more dovish Fed expectations,” Elias Haddad, global head of markets strategy at BBH, said, as quoted by Reuters.
Even so, a Federal Reserve rate hike may not automatically trigger a sharp dollar rally. Other major central banks are also expected to tighten their monetary policies.
The European Central Bank is widely expected to raise its interest rate to 2.75% on Thursday this week. Meanwhile, markets are pricing in a 75% probability that the Bank of Japan will raise rates by 25 basis points at its September 18 meeting.
Expectations for a Bank of Japan rate hike have supported the yen. Japan’s currency strengthened at the start of the week, extending its sharp gain from the previous week, when it had briefly surged more than 2% against the US dollar.
