Asian currencies weakened against a rising U.S. dollar on Monday, with the dollar index around 99.35, up 0.2% after a 0.12% gain on Friday. The euro slipped 0.3% to 1.1564 and the pound fell 0.2% to 1.3501. The dollar/yen pair rose 0.3% to 154.03, leaving the yen near its seven‑month high of 152.89 reached the previous week.
Traders increased bets on a Federal Reserve rate hike following accelerated U.S. consumer prices in August; CME FedWatch showed an 86% probability of a hike at the September 16 meeting. Treasury yields reflected the outlook, with the 10‑year yield around 4.97% and the two‑year yield staying above 4.6%.
Oil prices added to the dollar’s strength, as Brent crude rose nearly 3% to $107.60 a barrel amid fresh Middle East attacks that heightened supply concerns and inflation risks.
The Bank of Japan is expected to deliver another 25‑basis‑point increase at its Friday meeting, keeping the yen supported. Other Asian pairs showed mixed moves: the Australian dollar weakened, with USD/AUD up 0.4% to 1.3991; the New Zealand dollar fell 0.5% to $0.5782; the offshore yuan was little changed, USD/CNH up 0.01% to 6.7080 and the onshore yuan down 0.01% to 6.7073; USD/KRW rose 0.25% to 1,344.86; and USD/SGD gained 0.16% to 1.2691.
Indian markets were closed for a public holiday. This week’s central bank calendar includes the Federal Reserve meeting on Wednesday, the Bank of England on Thursday, and the Bank of Japan on Friday.
