China provided a partial offset to the risk-averse tone after data showed the world’s second-largest economy grew slightly more than expected in the fourth quarter

Most Asian currencies were largely unchanged on Monday as investors digested slightly stronger-than-expected economic growth data from China.

China provided a partial offset to the risk-averse tone after data showed the world’s second-largest economy grew slightly more than expected in the fourth quarter.

Gross domestic product growth allowed China to meet its official 5% growth target for 2025, offering some reassurance on economic momentum despite lingering concerns over weak domestic demand and property sector strains.

The yuan’s onshore pair USD/CNY edged down 0.1% to its lowest level since May 2023.

In Asian foreign exchange markets, most currencies traded in tight ranges as traders refrained from taking aggressive positions.

The won’s USD/KRW pair inched up 0.1%, while the Singapore dollar’s USD/SGD declined 0.2%.

The Indian rupee’s USD/INR traded largely unchanged.

The Australian dollar’s AUD/USD pair added 0.1% on Monday.

The US Dollar Index dropped 0.2% from a seven-week high in Asian hours. US Dollar Index Futures traded 0.3% lower as of 03:58 GMT.

Risk sentiment deteriorated after U.S. President Donald Trump said he would impose tariffs on eight European nations that have opposed his plan to acquire Greenland.

Trump said a 10% levy would take effect from Feb. 1 and rise to 25% in June if no agreement is reached, reviving fears of an escalation in transatlantic trade tensions and potential spillovers into global markets.

Media reports suggested the European Union is preparing to halt progress on an EU-U.S. trade deal and could revive a previously outlined €93 billion tariff package targeting U.S. goods.

France has also pushed for the bloc to deploy its anti-coercion instrument against Washington, a powerful tool designed to respond to economic pressure from third countries.