The US dollar maintained its strength, reaching a 13-month high, while the Japanese yen edged closer to a 40-year low amid ongoing hawkish signals from the Federal Reserve. According to Investing.com Forex, Asian currencies broadly weakened as the dollar held firm during the Asian session on Friday.
Gold prices also declined, falling below the $4,200 mark, hitting fresh weekly lows. FX Street attributed the decline to the combination of the Fed's tightening outlook and heightened uncertainty surrounding Iran, both factors boosting demand for the US dollar at the expense of safe-haven assets like gold.
For Japanese investors and traders, the yen’s continued depreciation against the dollar poses challenges for import costs and inflation while offering opportunities for exporters benefiting from a weaker yen environment.