Euro and Sterling skyrocketed. What about Asian currencies?

The Euro surged forward to $1.1314 on Monday. The European Central Bank announced last week that it would increase bond purchases to help the eurozone’s weakest economies. This news bolstered the Euro.

The British pound also soared by 0.25% to $1.2704 in Asia on Monday, near its highest point since March 12.

Furthermore, the Australian and New Zealand dollars skyrocketed to their highest point since January. The Aussie jumped by 0.34% to $0.6993, while the Kiwi increased to $0.6533.

The onshore Chinese yuan was in focus as well. On Sunday, data showed that exports from China, the world’s second-largest economy, tumbled down less than the market expected for May. As trade with China supports commodity currencies, this news boosted the Australian and New Zealand dollars.

The yuan may gain due to these results. But some experts noted that there are still many risks on the outlook, such as diplomatic tension between the United States and China, and the U.S. presidential election this year.

What about the U.S. dollar?

The U.S. dollar tumbled down against the Antipodean currencies and the sterling. The surprising improvement in U.S. labor market data caused the greenback’s downfall. It bolstered expectations for economic recovery while reducing safe-harbor demand for the dollar.

However, the Japanese yen fared much worse. The dollar surged against it, reaching near its highest point in more than two months. Sentiment has improved rapidly in the forex market as traders focus on signs of a recovery from the pandemic. Still, investors are looking out for the outcome of a U.S. Federal Reserve meeting, which may change the things.

Commodities and emerging market currencies are finding it easier to climb up against the greenback on the hopes of an economic rebound – noted Junichi Ishikawa, the senior foreign-exchange strategist at IG Securities in Tokyo. On the other hand, the yen suffered. The dollar traded at 109.67 yen at last notice.