Mary Daly Says AI Uncertainty Clouds Fed Rate Outlook Despite Restrictive Policy 
Asian Stocks Slide as Chip Shares Tumble Ahead of Key U.S. Jobs Report 
Japan Signals Surprise Yen Intervention Strategy as BOJ Hawkish Stance Puts FX Traders on Alert 
Asian Stocks Rebound as Tech Shares Rally on Fed Rate Cut Hopes and Easing Iran Tensions 
New Zealand Consumer Confidence Rises in June as Inflation Expectations Ease 
US Dollar Rises as Fed Rate Outlook Stays Hawkish, Euro Slips and Yen Near 40-Year Low 
Denmark Central Bank Intervenes to Support Krone Peg Against Euro 
Goldman Sachs Says China Competition Weighs More on EU Growth Than Trade Deficit 
US Jobs Report Preview: June Payroll Growth Seen Slowing as Fed Rate Decision Looms 
Brazil to Phase Out Gasoline Subsidy First as Diesel Support Stays Longer 
Asian Currencies Stay Under Pressure as Dollar Holds Near 13-Month High Ahead of U.S. Jobs Report 
US Stock Futures Hold Steady Ahead of June Jobs Report as Fed Rate Outlook Remains in Focus 
Wall Street Ends Mixed as Weak Jobs Data Lowers Fed Rate Hike Bets, Chip Stocks Tumble 
Turkey Vehicle Sales Fall 11.4% in June as Auto Market Weakens 
Australia Trade Balance Swings to Surprise Deficit as Imports Outpace Exports in May 
Japan Signals Readiness to Act on Yen as Intervention Speculation Grows 
Most Asian currencies edged higher on Friday after the U.S. dollar retreated from a 13-month high following weaker-than-expected U.S. nonfarm payrolls data, raising fresh questions about the Federal Reserve’s interest rate outlook. However, gains across regional foreign exchange markets remained modest as investors stayed cautious over elevated U.S. interest rates, geopolitical uncertainty, and thin trading ahead of the U.S. market holiday.
The Japanese yen remained in focus, with the USD/JPY pair hovering near 161.16 after a sharp overnight decline. The yen recovered from its weakest level in four decades as Japanese officials intensified warnings about potential currency market intervention to curb excessive speculation. Reports suggested Tokyo has shifted toward a more targeted strategy aimed at squeezing speculative positions rather than signaling intervention well in advance.
Market participants are also watching for possible action during the U.S. holiday, a period when Japan has previously stepped into currency markets. Despite the recent rebound, the yen remains one of Asia’s weakest-performing currencies this year due to higher oil prices, the wide interest rate gap between Japan and the United States, and ongoing concerns over Japan’s fiscal outlook.
Analysts at OCBC noted that while intervention risks could trigger short-term volatility and sudden corrections in the yen, a lasting reversal in the USD/JPY exchange rate would likely require a meaningful shift in broader macroeconomic fundamentals rather than intervention alone.
The U.S. dollar also remained under pressure after June’s softer payrolls report reduced expectations that the Federal Reserve would continue raising interest rates this year. The dollar index extended overnight losses in Asian trading, although expectations for a hawkish monetary policy continued to provide underlying support. Federal Reserve Chair Kevin Warsh reiterated this week that the central bank remains committed to achieving its 2% inflation target despite persistent inflation pressures.
A weaker dollar helped lift several regional currencies. The Australian dollar gained nearly 0.3% against the greenback, while the Chinese yuan strengthened slightly, pushing USD/CNY down about 0.1%. The Indian rupee also posted modest gains, while the Singapore dollar traded largely unchanged. Meanwhile, the Taiwan dollar advanced roughly 0.2% as investors cautiously returned to regional currencies despite lingering concerns over U.S.-Iran negotiations and global market uncertainty.
