Asian currencies strengthened notably on Friday after China’s Commerce Ministry expressed a willingness to re-engage in trade discussions with the United States. This announcement contributed to a decline in the U.S. dollar ahead of the closely watched U.S. nonfarm payrolls report.
Key Market Movements:
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USD/TWD: Down by 2.58%
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USD/SGD: Decreased by 0.35%
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USD/INR: Fell by 0.87%
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USD/KRW: Dropped by 1.15%
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DXY (Dollar Index): Declined by 0.20%
Although Chinese markets remained closed due to a public holiday, the broader Asian forex market reacted positively to signs of easing trade tensions. However, the lack of actual negotiations suggests meaningful progress will depend on whether the U.S. modifies its tariff approach.
Looking Ahead:
Attention now shifts to the upcoming U.S. nonfarm payrolls data. The results are expected to influence expectations for future Federal Reserve policy. A strong jobs report could revive the dollar, while softer figures may support a more dovish monetary outlook.