Asian currencies traded in different directions: the yen rose amid the sell-off of technology sector stocks, and the Taiwan dollar briefly fell below the 33 mark.
On Friday, Asian currencies showed mixed dynamics. The sharp decline in US technology stocks prompted investors to turn to defensive instruments, which supported the Japanese yen. The Taiwan dollar briefly weakened below the key level of 33.
The US dollar rate remained stable ahead of the release of employment data for October. Markets were revising expectations for the Federal Reserve's interest rates.
The USD/JPY pair rose 0.1% to 157.85 after the yen strengthened to a weekly high around 157.40. The USD/TWD pair was at 32.988, down 0.3%, after briefly rising above 33.
The yen strengthened 0.6% to 157.54 per dollar, outperforming other G10 currencies. This occurred amid a sell-off in stocks on Wall Street, where Nvidia fell 5.52%, and Broadcom lost 4.36%. Investors feared tighter controls on investments in artificial intelligence, which led to an outflow of capital from stocks into bonds and defensive currencies. Later, the yen partially retreated from the achieved levels.
The Taiwan dollar fell 0.5% to 33.040 per dollar — the weakest level since April 2025. Taiwanese stocks declined by about 6% due to the outflow of foreign capital, although the rate later recovered below 33. The South Korean won was also under pressure: the KOSPI index plunged 8.6% and fell below 5000 for the first time in nine months, leading to a suspension of trading.
The Australian dollar fell 0.3% to 0.6914, despite the growth in the trade surplus. The yuan corrected after reaching highs, and the kiwi continued to weaken amid low economic growth. The US employment report is expected to show a recovery in the pace of job creation.