Asian currency markets stayed flat on Monday as the U.S. dollar slipped after a federal probe was launched into Federal Reserve Chair Jerome Powell. The investigation, sparked by allegations that the administration threatened the Fed over Powell’s Senate testimony on Fed‑headquarters renovation costs, raised doubts about the central bank’s independence and cooled risk appetite across the region. The U.S. dollar index fell 0.2% from its one‑month peak, while futures mirrored the decline.

In Japan the yen edged up 0.2%, and the Singapore dollar was unchanged. South Korea’s won outperformed, gaining 0.7%, whereas the Australian dollar rose 0.2% and the Indian rupee held steady. China’s on‑shore yuan barely moved and the offshore version slipped 0.1%.

Investor sentiment also reflected softer U.S. labor data; December non‑farm payrolls grew slower than expected, fueling bets that the Fed could cut rates later this year. Markets now price at least one more cut in 2026, with the upcoming December CPI seen as a key gauge before the Fed’s next policy meeting.