Asian currencies gained Monday as the dollar steadied after jumping on stronger-than-expected U.S. jobs data, according to Investing.com. The US Dollar Index edged down 0.1% to 102.181 by 04:16 GMT, after rising 0.7% on Friday in its biggest one-day gain in five months.
U.S. employers added 165,000 jobs in October, more than double economists' expectations, and the unemployment rate fell to 4.1% from 4.2%. CME FedWatch data cited in the report shows markets pricing in nearly an 80% probability of a 25-basis-point Fed rate increase at the December meeting, up from about 71% a week earlier. Investors are awaiting U.S. consumer price figures due Tuesday.
The South Korean won led regional gains, with USD/KRW dropping 0.7%. The Japanese yen's USD/JPY edged down 0.2%, and the Australian dollar's AUD/USD rose 0.3%. The Singapore dollar's USD/SGD ticked 0.1% lower. The Indian rupee's USD/INR was unchanged, and the Chinese yuan's onshore USD/CNY and offshore USD/CNH traded largely flat.
China's producer price index rose 5.7% year on year in October, up from 5.0% in September and above the expected 5.3%, the report said. Consumer prices rose 0.7%, easing from 0.9% and missing forecasts of 0.8%. The report attributes producer inflation to higher global energy costs and demand for AI-related electronics, and attributes weaker consumer prices to falling food prices and subdued domestic demand.
Capital Economics analysts expect the external price shock to persist in coming months but fade next year, with producer prices returning to deflation and consumer inflation averaging 0.4% in 2027.