Asian Currencies Weaken as Dollar Strengthens; Yen in Focus

Rising oil prices and U.S.-Iran tensions redirected investors to safe-haven assets, overshadowing the dollar's strength. Increasing Treasury yields and geopolitical uncertainties appear to have reduced expectations of a near-term Federal Reserve rate cut.

Yen Interventions and GPIF Impact

Japanese Finance Minister Satsuki Katayama's statement that public pension funds will increase domestic asset investments signaled structural support for the yen. The USD/JPY pair rose 0.4% to 162.3, still below last week's peak near 162.7.

■GPIF asset rebalancing could generate inflows of 12-30 trillion JPY

■BOJ may revise 2026 growth forecasts upward amid weak yen pressures

■AI investments and declining energy costs are fueling inflation risks

Asian Markets and Currency Pressure

South Korea's KOSPI index plunged over 8% and foreign outflows from semiconductor stocks like SK Hynix and Samsung Electronics added downward pressure on the won. USD/KRW climbed 0.6% to 1,507 while the Chinese yuan traded sideways ahead of a busy data week.

■SK Hynix and Samsung Electronics stock sales intensified won depreciation

■Singapore will release preliminary Q2 GDP figures amid global investor scrutiny of SME data

■Australian dollar weakened 0.4% against the greenback

Markets await Tuesday's U.S. June CPI data and global economic indicators to set direction. From yen interventions to dollar fluctuations, investor strategies are increasingly tied to domestic fiscal policies.