Major currency pairs traded mixed in early Asian hours, with the euro and Japanese yen under pressure, while commodity-linked currencies such as the Australian dollar and New Zealand dollar posted modest gains.
The euro slipped against the U.S. dollar, with EUR/USD trading around 1.1717, down 0.07%, reflecting cautious sentiment amid lingering concerns over economic growth in the euro zone. The single currency also weakened against the yen, with EUR/JPY falling 0.19% to 185.03.
The Japanese yen remained weak, as USD/JPY declined 0.16% to 157.90, staying close to recent multi-decade lows. Persistent yield differentials between the U.S. and Japan continue to weigh on the yen, keeping it vulnerable despite periodic intervention warnings from Japanese authorities.
The British pound edged higher against the dollar, with GBP/USD rising 0.04% to 1.3442, supported by lingering expectations that U.K. interest rates may stay higher for longer following recent inflation data.
Among emerging and safe-haven currencies, the U.S. dollar strengthened slightly against the Swiss franc, with USD/CHF up 0.24% to 0.7914, while the greenback also gained marginally against the Canadian dollar, trading near 1.3834.
Commodity currencies outperformed, with the Australian dollar climbing 0.33% to 0.6753 against the U.S. dollar, while the New Zealand dollar advanced 0.36% to 0.5849, tracking improved risk sentiment and firmer commodity prices.
Meanwhile, the U.S. dollar continued its gradual rise against the Turkish lira, with USD/TRY trading near 43.29, reflecting ongoing inflation and monetary policy challenges in Turkey.
Forex markets remain sensitive to global macro cues, including central bank policy expectations, geopolitical developments, and upcoming economic data releases, which are likely to drive near-term currency movements.
