On Monday, most Asian currencies demonstrated minimal changes, while the dollar slightly decreased in anticipation of significant economic indicators scheduled for release this week. The Japanese yen strengthened from nearly two-month lows as the market awaited the Bank of Japan (BOJ) meeting.
The prevalent concerns over China contributed to subdued sentiment in Asian markets. Earlier in the session, the People’s Bank of China opted to maintain its benchmark loan prime rate at record lows. However, the central bank faces challenges in loosening policy further, as it navigates the delicate balance between supporting economic recovery and preventing additional weakness in the yuan.
In onshore trading, the yuan exhibited marginal movements, while the offshore yuan crossed the 7.2 level against the dollar.