The US dollar and the Japanese yen declined on Monday morning in Asia as a surge in Asian stocks, driven by Friday's encouraging US Job data, gave traders confidence to buy higher-yielding assets.
Buoyed by a strong close on Wall Street on Friday and firmer commodity prices, the Japanese stock market is trading notably higher today. The benchmark Nikkei 225 index, which advanced to 10,567 after opening with a big positive gap at 10,538, is currently trading at 10,552, up 183 points or 1.75% over its previous close.
Among other markets in the Asia-Pacific region, Australia, Malaysia, Singapore, South Korea and Taiwan are trading notably higher, while New Zealand and China stocks are trading flat.
The U.S. economy shed fewer jobs than expected in February, a report from the Labor Department showed on Friday. The economy lost 36,000 jobs in February following a revised decrease of 26,000 jobs in January. The relatively modest decline surprised economists, who had expected a more substantial loss of about 68,000 jobs amid the impact of severe winter weather in parts of the country.
The report also revealed that the unemployment rate in February remained unchanged from the previous month at 9.7 percent. The unemployment rate had been expected to tick up to 9.8 percent.
In economic news from Japan today, the nation posted a current account surplus of 899.8 billion yen in January, the Ministry of Finance said today. That was higher than analyst expectations for a surplus of 783.9 billion yen following the 900.8 billion yen surplus in December.
The trade balance showed a surplus of 197.2 billion yen, again topping forecasts for a surplus of 152.9 billion yen after the 631.2 billion yen surplus in the previous month. Imports were up 7.1 percent on year to 4.4 trillion yen, while exports surged 40.6 percent on year to 4.6 trillion yen.
Bank lending in Japan was down 1.6 percent on year in February, the Bank of Japan said today, standing at 400 trillion yen. That follows a 1.7 percent annual decline in January.
The yen slumped to a 13-day low of 84.64 against the Swiss franc and 123.82 against the euro around 9:20 pm ET, compared to last week's closing values of 84.09 and 123.0, respectively. If the yen weakens further, it may test support levels at 125.30 against the euro and 85.50 against the franc. Currently, the yen is quoted at 84.57 against the Swiss franc and 123.71 against the euro.
The yen also tumbled to near a 2-week low of 90.69 against the US dollar before recouping some of its losses around 6:50 pm ET. The greenback-yen pair is presently worth 90.40, compared to 90.28 hit late New York Friday. If the yen drops further, it may find support around the 91.30 level.
The yen reached an 11-day low of 137.42 against the pound around 7:00 pm ET, compared to last week's close of 136.66. The pound-yen pair is presently worth 137.25 with 140.20 seen as the next likely target level.
The Japanese currency also plunged to a 13-day low of 83.49 against the Australian dollar and 63.49 against the NZ dollar by 7:00 pm ET. The yen that closed Friday's deals at 62.94 against the kiwi and 81.99 against the aussie is currently quoted at 63.31 and 82.39, respectively. If the yen declines further, support levels are seen at 82.80 against the aussie and 64.60 against the NZ dollar.
Against the Canadian dollar, the yen plummeted to a 2-week low of 88.33 around 7:00 pm ET and falling below the 88.50 support could set its weakest level in nearly 7 weeks. The loonie-yen pair that was worth 87.64 at Friday's close is currently quoted at 88.05.
The US dollar slumped to a weekly low of 1.5189 against the pound around 9:40 pm ET, compared to 1.5137 hit late New York Friday. The cable is currently worth 1.5180 with 1.5360 seen as the next likely target level.
The greenback also reached a 4-day low of 1.3692 against the euro and 1.069 against the Swiss franc around 10:00 pm ET and this may be compared to last week's closing values of 1.3625 and 1.0742, respectively. If the buck declines further, support levels are seen at 1.3740 against the euro and 1.064 against the Swiss franc.
Looking ahead, Japan is scheduled to release its eco watchers survey report for February shortly.
From Europe, the Bank of Franc business sentiment index for February, euro-zone sentix investor confidence for March and the German industrial production for January are expected to influence markets today.
There are no market moving economic data due out in the North American session today.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.