The dollar continued its broad decline even though U.S. markets were closed. The dollar index, which tracks the U.S. currency against a basket of six peers, traded at 90.437 at 6:45 a.m. HK/SIN after falling as low as 90.279 on Monday.
“Holidays typically mean consolidations but today, less participation from the U.S. translated into exaggerated moves in currencies driven by low liquidities,” Kathy Lien, managing director of FX strategy for BK Asset Management, said in a note.
Meanwhile, the euro extended gains as the greenback sank in the last session. The common currency touched its highest levels in three years on Monday, climbing as high as $1.2296 before paring some gains to last trade at $1.2268.
In Asia Pacific, futures implied Japanese equities would be little changed at the open. Nikkei futures traded in Chicago were flat at 23,715 compared to the benchmark index’s previous close. Osaka futures were slightly softer at 23,670.
Down Under, the SP/ASX 200 slipped 0.26 percent in the early going.
Rio Tinto shares outperformed other large miners, tacking on 0.29 percent after it reported fourth-quarter production figures earlier in the day. The company said 2017 iron ore shipments rose 1 percent and were in line with guidance. Fourth-quarter iron ore shipments rose 3 percent compared to the same period one year ago.
Trade was thin on the energy front due to the closure of U.S. markets, although prices remained near three-year highs.
Softness in the dollar also saw other commodities strengthen on Monday, with gold touching its highest levels in four months and more than 1 percent gains seen in copper, nickel and zinc.
IPOs in focus
Baidu’s video-streaming platform iQiyi has confidentially applied to potentially list stateside, Thomson Reuters publication IFR reported on Monday, citing sources. The deal, which could potentially raise around $1 billion, is expected to take place late in the current quarter or in the second quarter, IFR added.
The latest news came hot on the heels of earlier headlines that other Chinese companies, including online finance platform Lufax and smartphone maker Xiaomi, were looking into initial public offerings of their own, most likely in Hong Kong.