Currencies

Asian FX mixed as yen gains on risk aversion, Taiwan dollar breaks 33 amid AI rout


Investing.com — Asian currencies traded mixed on Friday as a sharp selloff in U.S. technology shares drove investors towards haven assets, supporting the Japanese yen, while the Taiwan dollar briefly weakened past a key psychological level.

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The U.S. dollar held broadly steady ahead of October payrolls as markets reassessed the Federal Reserve’s interest-rate outlook.

The U.S. dollar index rose 0.1% to 101.70. The USD/JPY pair was up 0.1% at 157.85 after the yen earlier strengthened to a one-week high near 157.40.

The USD/TWD pair stood at 32.988, down 0.3%, after briefly rising above 33. The USD/KRW pair gained 0.2% to 1,360.36, while USD/CNH and USD/CNY were little changed. The Australian and New Zealand dollars fell 0.3% to $0.6914 and $0.5580, while the Singapore dollar weakened 0.2%.

Yen draws safe-haven demand as AI selloff rattles markets

The yen strengthened as much as 0.6% to 157.54 per dollar, outperforming all Group-of-10 currencies as a sharp Wall Street selloff triggered a shift towards safer assets.

The Nasdaq plunged 5.52%, its steepest one-day drop since April 2025, while the S&P 500 fell 4.36%. Investors feared that Democrats’ sweeping midterm victory could lead to tighter scrutiny of artificial-intelligence investment, particularly data-centre construction, prompting a retreat from equities into bonds and haven currencies. The yen subsequently surrendered some of its gains.

The move has revived its traditional safe-haven appeal. During a similar technology-stock selloff last month, the currency briefly strengthened to 156.08 per dollar before reversing much of that advance.

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Elsewhere, the Taiwan dollar fell as much as 0.5% to 33.040 per dollar, its weakest since April 2025 and its first break above 33 since then. It was Asia’s worst performer as Taiwan shares dropped around 6% amid foreign outflows, although it later recovered below 33.

The won also faced equity-driven pressure. The KOSPI plunged 8.6%, falling below 5,000 for the first time in nine months and triggering a 20-minute trading halt. Foreign investors sold 3.39 trillion won of shares on Thursday. The dollar-won rate had risen 1.16% from the previous weekly close to around 1,357.9 before reaching 1,360.36.

Kiwi and yuan face pressure as regional data shape currency outlook

The New Zealand dollar has fallen around 11% since the pandemic, making it the second-worst-performing G10 currency after the yen. Sluggish growth and a weak labour market have weighed on the kiwi, which recently hit a record low against the offshore yuan and its weakest level against the Australian dollar in nearly 14 years, raising import costs ahead of the election.

The yuan has retreated after reaching a more than four-year high near 6.659 per dollar last week. It had been heading for a fifth consecutive weekly gain and fourth monthly advance, supported by exporter conversions, before the PBOC raised banks’ foreign-exchange reserve requirement from 4% to 6% from November 15.

The move ended the onshore yuan’s 13-session winning streak, its longest since 1996, although the currency remains up around 5% this year.

The Australian dollar fell 0.3% to $0.6914 despite a wider September trade surplus of A$2.83 billion, as exports rose 2.3% and imports fell 3.3%. It has struggled to gain traction after the RBA’s fifth rate hike this year lifted its policy rate to an 18-year high of 4.85%.

Sterling reached a seven-week high of $1.3503 before the BoE raised rates by 25 basis points to 4% in an 8-1 vote. The euro was headed for a 0.5% weekly gain, ending two weeks of losses.

Friday’s U.S. payrolls report is expected to show job growth recovering from September’s 29,000; DBS forecasts 100,000, against FactSet consensus of 65,000. Inflation data next week will also be watched for signs of easing price pressures.

Original Article

Asian FX mixed as yen gains on risk aversion, Taiwan dollar breaks 33 amid AI rout

Dollar flat as Wall Street rout lifts safe-haven yen; pound in focus as BOE hikes

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