Asian Currencies Gain as Weak US Jobs Data Lowers Rate Hike Odds

Asian currencies consolidated or strengthened against the US dollar on August 10, 2026, following a weak US nonfarm payrolls report for July. The data showed a decline of 23,000 jobs, missing the consensus estimate of 88,000, while the Labor Force Participation Rate fell for the eighth consecutive month to 61.4 percent.

This labor market instability shifted market expectations regarding the Federal Reserve System. Fed fund futures initially implied a 57% chance of no rate change in September, while subsequent data lowered the probability of a September interest rate hike by the Federal Open Market Committee to 43.9 percent from 57 percent.

The Indonesian rupiah rose 0.49 percent to Rp17,810 per US dollar, supported by foreign exchange reserves of US$145.3 billion. The Malaysian ringgit also gained against the dollar, though it traded lower against the euro, British pound, and Japanese yen. Other currencies remained steady or saw slight declines, with the US dollar holding at 1,407.80 won and 6.7432 offshore yuan, while the Australian dollar dipped 0.1% to US$0.7061.

Analysts indicate that future currency movements will depend on upcoming US inflation data and uncertainties surrounding the reopening of the Strait of Hormuz.