Overview

The U.S. dollar hovered near a 13‑month high on 29 June 2026, keeping most Asian currencies under pressure as investors tracked geopolitical and economic developments.

Dollar Performance

The US Dollar Index (USDIDX) was little changed at 101.29 during Asian trading after reaching its highest level in more than a year the previous week. At the current pace the index is on course for a roughly 2.5 % gain in June, the strongest monthly advance since July 2025, supported by elevated Treasury yields, resilient U.S. economic data and expectations of higher‑for‑longer Federal Reserve rates.

Market Sentiment and Geopolitical Context

Washington and Tehran exchanged fresh attacks over the weekend before agreeing on Tuesday in Qatar to halt further military action and resume talks. The cease‑fire eased immediate fears of a broader regional conflict, but investors remained wary that renewed disruptions around the Strait of Hormuz could keep energy markets volatile and sustain demand for safe‑haven assets.

Impact on Asian Currencies

  • The New Zealand dollar (NZD/USD) edged up to 0.5650 but remained down nearly 5.8 % in June, putting it on track for its steepest monthly loss since 2024.
  • The Australian dollar (AUD/USD) traded at 0.6893, indicating a monthly decline of more than 4 %; market participants await the Reserve Bank of Australia’s June meeting minutes, where policymakers reiterated that unconventional monetary tools would be reserved for periods of severe market stress.
  • The Japanese yen (JPY/USD) weakened to 161.85 per dollar, staying near multi‑decade lows.
  • The South Korean won (KRW/USD) softened to 1,544.13 per dollar.
  • The Chinese yuan (USD/CNH) was little changed around 6.80 per dollar after modest gains the previous week.

Regional Economic Calendar

Investors are focusing on a packed schedule that includes:

  • China’s official manufacturing PMI, expected to edge back into expansion, alongside industrial profit data and the People’s Bank of China’s new overnight reverse‑repo operation.
  • South Korea’s export and industrial production figures, with ANZ economists forecasting a sharp rebound in semiconductor shipments and factory output after earlier quarter weakness; inflation is expected to accelerate as higher energy costs feed consumer prices.
  • Japan’s quarterly Tankan business survey, where sentiment is expected to improve despite recent energy‑related disruptions, and upcoming manufacturing and services PMI readings that will be examined for signs of activity recovery heading into the third quarter.
  • Indonesia’s inflation data and India’s industrial production numbers, both of which could shape expectations for monetary policy across the region.

Sources

The article was published by Investing.com on 29 June 2026 at 10:48 am and updated at 02:38 pm. Reporting was provided by Roushni Nair.