Forex News

Asia FX dips, dollar steadies as Fed uncertainty mounts

2023.04.19 01:17


© Reuters.

By Ambar Warrick

Investing.com — Most Asian currencies retreated on Wednesday, while the dollar firmed slightly as uncertainty over rising U.S. interest rates battered risk-heavy assets, with focus now turning to a slew of economic indicators due this week.

The fell 0.2%, coming under renewed pressure from the dollar this week as new Bank of Japan Governor Kazuo Ueda reiterated that the central bank will maintain its ultra-loose monetary policy.

Worsening local economic conditions also weighed on the yen, with focus turning to key due on Friday.

Optimism over a Chinese economic recovery offered little support to regional currencies, as stronger-than-expected data also pointed to an uneven rebound. The country’s manufacturing sector, considered a bellwether for growth, was still struggling to recover from the COVID pandemic.

The was flat on Wednesday. Focus this week is also on an by the People’s Bank of China on Thursday.

Risk-heavy Southeast Asian currencies also retreated, with the down 0.3%, while the lost 0.1%. The was somewhat supported by data showing that the country’s grew more than expected in March.

Broader Asian currencies inched lower on Wednesday as uncertainty over the path of U.S. monetary policy kept traders wary. The and both rose slightly, also taking support from an overnight bounce in Treasury yields.

Fears of rising U.S. interest rates crept back into markets as several Fed officials called for more hikes. show that markets are pricing in an 85% chance that the Fed will hike by 25 basis points in May, as well as a 19% chance that the bank will hike again in June.

While the general consensus is still for a pause in June, Fed officials have also warned that interest rates may stay higher for longer, likely weighing on economic growth. The prospect of a U.S. economic slowdown, coupled with elevated interest rates, has weighed heavily on Asian currencies this year.

Among other movers on Wednesday, the rose slightly as a showed that analysts saw a lower probability of a recession, after the Reserve Bank paused its interest rate hikes.

But the RBA still signaled that more rate hikes may be in order, especially if inflation remains stubborn.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 95,103.48 1.54%
ethereum
Ethereum (ETH) $ 3,446.51 3.39%
tether
Tether (USDT) $ 1.00 0.06%
solana
Solana (SOL) $ 239.65 4.25%
bnb
BNB (BNB) $ 641.89 2.04%
xrp
XRP (XRP) $ 1.46 5.20%
dogecoin
Dogecoin (DOGE) $ 0.400458 4.85%
usd-coin
USDC (USDC) $ 0.999701 0.14%
cardano
Cardano (ADA) $ 0.993078 0.24%
staked-ether
Lido Staked Ether (STETH) $ 3,451.96 3.57%
tron
TRON (TRX) $ 0.197318 4.25%
avalanche-2
Avalanche (AVAX) $ 41.44 2.86%
the-open-network
Toncoin (TON) $ 6.08 0.12%
stellar
Stellar (XLM) $ 0.5075 3.57%
shiba-inu
Shiba Inu (SHIB) $ 0.000026 1.79%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,084.81 3.68%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 94,863.42 1.42%
polkadot
Polkadot (DOT) $ 8.44 0.88%
chainlink
Chainlink (LINK) $ 17.77 4.06%
weth
WETH (WETH) $ 3,448.45 3.58%
bitcoin-cash
Bitcoin Cash (BCH) $ 501.61 0.62%
sui
Sui (SUI) $ 3.16 5.78%
pepe
Pepe (PEPE) $ 0.000019 3.36%
near
NEAR Protocol (NEAR) $ 6.56 0.22%
leo-token
LEO Token (LEO) $ 8.32 1.01%
litecoin
Litecoin (LTC) $ 94.58 1.97%
uniswap
Uniswap (UNI) $ 11.43 8.43%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,630.38 3.58%
aptos
Aptos (APT) $ 11.97 0.91%
internet-computer
Internet Computer (ICP) $ 11.67 5.37%
usds
USDS (USDS) $ 1.00 0.11%
hedera-hashgraph
Hedera (HBAR) $ 0.136076 4.79%
crypto-com-chain
Cronos (CRO) $ 0.183143 1.82%
ethereum-classic
Ethereum Classic (ETC) $ 31.01 10.56%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.565912 3.75%
render-token
Render (RENDER) $ 7.67 0.84%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.11%
bittensor
Bittensor (TAO) $ 524.57 3.10%
kaspa
Kaspa (KAS) $ 0.149707 0.61%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.43 2.97%
arbitrum
Arbitrum (ARB) $ 0.909085 9.23%
dai
Dai (DAI) $ 0.999208 0.15%
celestia
Celestia (TIA) $ 8.09 0.05%
whitebit
WhiteBIT Coin (WBT) $ 23.96 1.30%
filecoin
Filecoin (FIL) $ 5.60 1.82%
vechain
VeChain (VET) $ 0.04143 0.66%
bonk
Bonk (BONK) $ 0.000044 4.40%
okb
OKB (OKB) $ 53.62 0.52%
blockstack
Stacks (STX) $ 2.14 8.14%
dogwifcoin
dogwifhat (WIF) $ 3.17 1.63%