The USD/KRW pair climbed 0.8%, the yuan’s onshore USD/CNY and offshore pairs USD/CNH ticked 0.1% higher, the Singapore dollar’s USD/SGD added 0.2%, the Australian dollar’s AUD/USD pair edged down 0.2%, while the yen’s USD/JPY pair ticked 0.1% higher

Most Asian currencies dropped on Monday, led by won, as traders shifted focus to Japan’s weak third-quarter growth reading.

The won led losses on Monday, with the USD/KRW pair climbing 0.8%.

In China, both the yuan’s onshore USD/CNY and offshore pairs USD/CNH ticked 0.1% higher.

The Singapore dollar’s USD/SGD added 0.2%.

The Australian dollar’s AUD/USD pair edged down 0.2%.

The yen’s USD/JPY pair ticked 0.1% higher.

Data on Monday showed that Japan’s economy contracted in the third quarter at an annualised decline of 1.8% – weaker than earlier quarters but slightly better than the median forecast of a 2.5 % drop.

On a quarter-on-quarter basis, GDP dropped 0.4%.

The decline was driven by weaker exports. Private consumption contributed little to growth and increased only modestly due to persistent inflation pressures faced by households.

The only strong component within the data was capital expenditure, which rose and suggesting that companies remain willing to invest despite the trade headwinds.

The US Dollar Index gained 0.1%. US Dollar Index Futures also traded 0.1% higher as of 04:55 GMT.

Meanwhile, investors increasingly believe that the U.S. central bank is unlikely to ease policy in the near term, a shift conveyed by several Fed policymakers who emphasised that inflation remains sticky and labour-market conditions are not yet clearly weakening.

Sentiment has been further dented by the recent data blackout caused by the U.S. government shutdown, which left investors without key macro indicators for weeks.

The shutdown delayed releases from the Bureau of Labor Statistics, including the September non-farm payrolls report, now due on Thursday.

With the probability of a rate cut in December sliding to nearly 40%, the dollar found a firmer footing, and Asian currencies came under pressure.