SINGAPORE – The American dollar climbed against major global currencies during early Monday trading in Asia, buoyed by robust U.S. employment figures from late last week and escalating tensions as the U.S.-Iran ceasefire remained precarious, increasing appetite for the safe-haven currency.
The European currency declined 0.2% to $1.1767, while the Japanese yen fell 0.1% to 156.905 yen per dollar and the British pound dropped 0.3% to $1.3597. The risk-sensitive Australian dollar decreased 0.2% to $0.7234, with New Zealand’s currency weakening 0.3% to $0.5948.
“We start the new trading week, as has so often been the case of late, reacting to geopolitical headlines,” said Chris Weston, head of research at Pepperstone Group Ltd in Melbourne.
Crude oil prices surged when markets reopened Monday, with Brent crude climbing 3.3% to $104.65 per barrel, following President Donald Trump’s Sunday dismissal of Iran’s response to an American proposal for peace negotiations, crushing expectations for a quick resolution to the 10-week-old conflict.
“I don’t like it — TOTALLY UNACCEPTABLE,” Trump wrote on Truth Social, without giving further detail.
The U.S. dollar remained steady against China’s yuan at 6.7951 yuan in offshore trading following weekend data showing China’s export growth picked up pace in April. Chinese exports rose 14.1% compared to the previous year in dollar terms, surpassing March’s 2.5% increase and beating economists’ predictions of a 7.9% rise as manufacturing facilities rushed to fulfill AI-related orders.
The dollar index, tracking the greenback’s performance against six major currencies, traded at 98.001 during early Asian sessions. The American currency gained momentum from Friday’s U.S. employment report showing non-farm payrolls grew by 115,000 in April, nearly double expectations. These numbers strengthened beliefs that the Federal Reserve would maintain current interest rates for an extended period.
“The dollar remained on the back foot last week, with the market laser-focused on prospects for a gradual reopening of the Strait of Hormuz, with the breakthrough potentially coinciding with the Trump-Xi meeting,” strategists from Barclays wrote in a research report.
“That said, U.S. data remains resilient and the labour market appears to have stabilised across a number of data sets,” they added.
President Trump and Chinese leader Xi Jinping are scheduled to address Iran, Taiwan, artificial intelligence, nuclear weapons and critical minerals during their upcoming meeting later this week, according to U.S. officials.
