U.S. Dollar Extends Decline in Asian Markets Amid Trade Policy Uncertainty

 

The U.S. dollar continued its downward trajectory in Asian trading on Monday, as investor sentiment was dampened by persistent uncertainty surrounding U.S. trade policies and upcoming economic data releases.​

The dollar index, which measures the greenback against a basket of major currencies, slipped by 0.3% during early trading hours. This decline was influenced by mixed signals from the Trump administration regarding trade negotiations with China. While President Trump expressed optimism about reaching a deal, Chinese officials have denied that formal talks are currently underway

In response to the dollar's weakness, several Asian currencies saw modest gains. The Indian rupee, for instance, strengthened to 85.26 per U.S. dollar, up from 85.45 in the previous session, bolstered by foreign bank dollar sales and increased foreign portfolio inflows .​

Meanwhile, gold prices fell more than 1% to $3,282.33 per ounce, as easing U.S.-China trade tensions reduced demand for the safe-haven asset . Investors are now awaiting key U.S. economic indicators, including job openings data on Tuesday and the non-farm payrolls report on Friday, for further insights into the Federal Reserve's potential policy moves.​

Asian equity markets displayed cautious optimism, with Japan's Nikkei 225 rising by 0.35% and South Korea's KOSPI edging up by 0.10%, reflecting a tentative rebound amid the prevailing trade policy uncertainties .​