Investing.com: Most Asian currencies were slightly traded on Friday ahead of key U.S. employment data due later in the day, although rising expectations for interest rate cuts kept the dollar heading for a weekly loss.

Sentiment towards risk assets improved this week following interest rate cuts from and to .

However, mixed economic signals from some major Asian economies circumscribed capital flows to regional markets, as did expectations for further US interest rate signals.

Chinese yuan unchanged after mixed trade data

The Chinese yuan pair was little moved on Friday, remaining near a six-month high following the country’s middling trade data.

China’s economic growth was stronger than expected in May, driven by forceful industrial production and overseas demand. As a result, the country also recorded a larger-than-expected surplus.

However, growth in China was much weaker than expected, indicating that local demand remains subdued as the broader economy struggles with an uneven recovery.

The sentiment towards China has deteriorated in recent weeks amid growing doubts about the country’s economic recovery and further stimulus measures from Beijing.

Weekly dollar cuts for nurses, waiting for non-farm wages

Both indexes stabilized in Asian trade on Friday and were expected to lose around 0.5% this week.

The dollar has been weakened by a series of faint economic readings, particularly from the labor sector, which has raised expectations that the Federal Reserve will become increasingly confident about cutting interest rates this year.

It has been observed that investors have been rapidly increasing their bets on the .

Weak labor market data also came ahead of data released later Friday, which will provide more definitive guidance on the labor market and interest rates.

The Fed is also scheduled to meet next week and is widely expected to keep interest rates steady.

Record low Indian rupee, RBI waited

The Indian rupee was little changed on Friday, remaining near record highs ahead of the Reserve Bank of India’s meeting later in the day.

The RBI is widely expected to remain unchanged and its signals on inflation and the economy will be in focus.

The rupee weakened significantly this week after 2024 general election results showed the ruling BJP-led alliance winning a much smaller majority than expected.

Broader Asian currencies traded in a tight range. The Japanese yen pair was hovering near 156 yen, centering directly on , where the central bank is expected to begin reducing bond purchases as it tightens policy.

The Australian dollar pair rose 0.1%, while the South Korean won pair rose 0.3%.

The Singapore dollar pair did not move slightly.