Asian currencies rise on stable Chinese business activity, weakening US dollar, positive for regional assets

From Financial Modeling Prep: 2025-06-30 08:05:00

Most Asian currencies rose on Monday, bolstered by stable Chinese business activity and a weakening U.S. dollar. Speculation on Fed rate cuts and U.S. fiscal concerns pushed the greenback lower.

The U.S. dollar hit a three-year low due to expectations of Fed rate cuts and uncertainty over a Senate tax and spending bill that may increase the federal deficit.

The U.S. Dollar Index dropped 0.2% in Asian trading hours following last week’s losses.

The Chinese yuan strengthened on positive PMI data and trade optimism, hitting its highest level since November. Overseas orders improved post the U.S.-China tariff agreement.

Despite positive PMI data, China’s manufacturing sector remains weak due to domestic demand issues and U.S. tariffs.

Asian currencies are set for monthly gains in June, driven by dollar weakness and rising demand for regional assets amidst reduced geopolitical risks.

Investors will monitor the U.S. Senate vote on Trump’s fiscal bill, Fed communications, and potential Chinese stimulus measures to gauge the market outlook.



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