South Korean Won Leads Asian Currency Losses as Dollar Strengthens

The South Korean won led losses among Asian currencies on Monday, driven by a strengthening U.S. dollar and rising energy costs. The U.S. Dollar Index rose 0.18% to 99.72 following a weak July jobs report, which shifted market expectations for a September Federal Reserve interest rate move from 67% to 44%.

Rising Brent crude oil prices, which approached $84 per barrel, added pressure to the won due to South Korea's heavy reliance on energy imports. The Japanese yen also weakened to 158.27 per dollar, effectively erasing gains from a recent coordinated yen-buying intervention conducted by the governments of Japan and the United States.

Other regional currencies, including the Australian and New Zealand dollars, declined alongside the won and yen. Market participants are now awaiting the U.S. Consumer Price Index report and retail sales data due Wednesday to determine the future policy direction of the Federal Reserve.