As French protests escalate into riots, they may prove a gift for Marine Le Pen’s right-wing party

The US dollar strengthened while the euro weakened as protests in France turned violent, impacting the euro. Trading commenced in Asia on Monday, with the dollar rising from its lowest levels of the month. French President Emmanuel Macron condemned scenes of violence during protests over living costs in a televised address. The euro, which saw a 0.1% decline, was weaker at US$1.1225 compared to the US dollar, which traded at 101.83.

French bonds, rather than direct effects, primarily influenced the euro's performance. Meanwhile, the US dollar was flat at 158.00 yen against the Japanese yen. The US dollar remained steady at 6.6842 yuan in offshore trade, with China's economy expected to slightly improve in the third quarter, following a three-year low. In emerging market Asia, the Indonesian rupiah weakened to its weakest level in almost three months at 18,000 against the dollar following MSCI's threat to downgrade the country's stock market status.

The Australian dollar increased by 0.3% to US$0.6965, while the New Zealand dollar remained unchanged at US$0.5656. The British pound stood at 1.3329. Oil prices fell as Asian trading resumed, with Brent crude futures dropping 1.7% to US$108.02 after US President Donald Trump lifted sanctions and tariffs on Russia, potentially leading to increased Russian fuel exports.

Fed funds futures indicated an 84% likelihood that the Federal Reserve would maintain interest rates at its upcoming meetings on October 28. The light positioning ahead of these meetings suggests that headline risk stemming from France's unrest will persist. In cryptocurrencies, Bitcoin rose 1.4% to US$82,067.66, while Ether increased by 3.0% to US$2,420.22.