The U.S. dollar index slipped 0.1% to 101.46, keeping the greenback near a one‑month high and leaving Asian currencies largely muted. The Japanese yen remained pinned near multi‑decade lows, with the USD/JPY pair quoted at 163.72 yen, while the South Korean won showed little movement despite a technology‑led equity sell‑off. Taiwan’s dollar rose 0.4% against the dollar, and both the Singapore dollar (USD/SGD +0.1%) and the Australian and New Zealand dollars were largely unchanged.

The Chinese yuan, both offshore (USD/CNH) and onshore (USD/CNY), traded largely flat. Crude oil prices fell after Washington paused daily strikes and President Donald Trump indicated a "good chance" of a U.S.–Iran diplomatic breakthrough, easing concerns of an energy‑driven inflation shock.

Indonesia’s rupiah was the region’s weakest performer, with USD/IDR climbing 0.5% following the surprise resignation of Bank Indonesia Governor Perry Warjiyo. Deputy Governor Destry Damayanti was appointed acting governor. Warjiyo, who had led the central bank since 2018, oversaw a framework combining rate adjustments, liquidity management, FX intervention and close government coordination. DBS senior economist Radhika Rao said investors will seek reassurance that Bank Indonesia remains experienced and independent.

Lower oil prices supported currencies of major energy importers. The Indian rupee slipped 0.1% to around INR 82.9 per dollar, benefitting from fading geopolitical risk premiums, reports of official intervention and recent RBI measures to attract capital. The Philippine peso stayed near its record low of 61.85 per dollar, with USD/PHP edging 0.1% lower; BSP Governor Eli Remolona noted modest central‑bank intervention last week to keep markets orderly.

Markets are pricing roughly a 38% probability of a 25‑basis‑point Federal Reserve rate hike on Wednesday, while investors await U.S. GDP and core PCE inflation data for further policy clues. The Fed decision is followed by expected policy announcements from the Bank of England and the Bank of Japan later in the week, with the BOJ likely to leave rates unchanged but keep the door open to further tightening.