Asian currencies moved in a flat-to-low range amid a dearth of clear immediate signals

Most Asian currencies moved in a tight range on Monday. The yen weakened in whipsaw trade after comments from Prime Minister Sanae Takaichi appeared to downplay the potential for currency market intervention by Tokyo.

Broader moves in Asian currencies were limited as markets looked to more upcoming economic cues this week, including a Reserve Bank of Australia meeting.

The yen lagged its Asian peers on Monday, with the USD/JPY pair gaining as much as 0.5% and trading above the 155-yen level.

Weakness in the yen came after Takaichi talked up the benefits of a softer currency during a recent campaign speech, which somewhat contrasted signals from her administration that warned against prolonged weakness in the currency.

Takaichi said a weaker yen benefited exporters, although she was seen softening her stance later.

A string of Japanese officials, including Takaichi herself, had warned markets against outsized moves in the yen, sparking concerns that government intervention was imminent.

The yen firmed sharply through January on this notion, although it still remained close to levels that have drawn government intervention in the past.

Broader Asian currencies moved in a flat-to-low range on Monday, amid a dearth of clear immediate signals. The Australian dollar’s AUD/USD pair rose 0.2%, with focus squarely on the conclusion of a Reserve Bank of Australia meeting on Tuesday, where the bank is widely expected to raise interest rates by 25 basis points.

Bets on an RBA hike were fuelled chiefly by data showing a resurgence in Australian inflation through the second half of 2025.

The won’s USD/KRW pair gained 0.5%, with the currency pressured by outsized outflows from equity markets, as investors dumped major technology stocks.

The yuan’s USD/CNY pair was flat, showing little reaction to mixed purchasing managers index data for January.