Forex News

Asia FX Muted as Dollar Finds Footing Ahead of Nonfarm Payrolls

2022.10.07 00:30



© Reuters.

By Ambar Warrick 

Investing.com– Most Asian currencies were muted on Friday as caution kicked in ahead of a key U.S. labor report, while pressure from the dollar also weighed amid continued hawkish signals from the Federal Reserve.

was an exception, rising 0.4% and extending recent gains on hopes that the South Korean government will continue to intervene in currency markets. The won recovered from a 13-year low this week. 

The South Korean currency was set to rise about 2.6% this week, its best weekly performance since March 2020. The South Korean government on Friday also vowed to stabilize local markets and tame inflation. 

The fell 0.3% and hit a record low of 82.356 against the dollar on Friday, as it faced pressure from a sharp jump in oil prices this week. The currency has hovered around record lows for most of 2022, despite intervention measures and interest rate hikes by the Reserve Bank. 

The was muted near 145 to the dollar, even as data showed declined in August, pointing to more pain for the world’s third-largest economy in the coming months. Japan is also struggling with heightened commodity prices and a severely weakened yen this year.

The led losses across Southeast Asia with a 0.4% drop, while China’s shed 0.2%. Chinese markets were closed for a week-long holiday. 

The recovered from recent losses and was trading flat around 112.13, as were . The greenback rose overnight after reiterated that the bank was unlikely to make a dovish pivot in the near-term.

Focus is now on U.S. data due later on Friday. The reading is expected to show steady growth in the labor market, giving the Fed enough space to keep raising interest rates sharply.

Still, data on Thursday showed that U.S. weekly jobless claims grew slightly more than expected, pointing towards some softness in the labor market. 

Asian currencies have fallen sharply this year amid pressure from rising U.S. interest rates and a stronger greenback. This trend is broadly expected to continue in the coming months, given that the Fed has shown no intent to soften its hawkish stance.

 



Source link

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 68,579.37 0.68%
ethereum
Ethereum (ETH) $ 2,426.21 1.89%
tether
Tether (USDT) $ 0.999458 0.15%
bnb
BNB (BNB) $ 558.36 0.38%
solana
Solana (SOL) $ 160.25 1.17%
usd-coin
USDC (USDC) $ 1.00 0.04%
xrp
XRP (XRP) $ 0.508144 0.48%
dogecoin
Dogecoin (DOGE) $ 0.165879 9.60%
staked-ether
Lido Staked Ether (STETH) $ 2,425.23 1.90%
tron
TRON (TRX) $ 0.162559 1.66%
cardano
Cardano (ADA) $ 0.329953 0.68%
the-open-network
Toncoin (TON) $ 4.60 5.67%
shiba-inu
Shiba Inu (SHIB) $ 0.000017 3.34%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,866.95 1.96%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 68,495.35 0.52%
avalanche-2
Avalanche (AVAX) $ 23.09 2.21%
weth
WETH (WETH) $ 2,426.19 1.79%
bitcoin-cash
Bitcoin Cash (BCH) $ 334.62 0.58%
chainlink
Chainlink (LINK) $ 10.47 2.33%
usds
USDS (USDS) $ 1.00 0.01%
leo-token
LEO Token (LEO) $ 6.07 0.04%
polkadot
Polkadot (DOT) $ 3.81 0.55%
sui
Sui (SUI) $ 1.93 2.68%
litecoin
Litecoin (LTC) $ 66.83 0.07%
near
NEAR Protocol (NEAR) $ 3.66 0.09%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,552.93 1.81%
aptos
Aptos (APT) $ 8.18 0.25%
uniswap
Uniswap (UNI) $ 6.90 0.95%
pepe
Pepe (PEPE) $ 0.000008 0.03%
internet-computer
Internet Computer (ICP) $ 7.13 0.94%
dai
Dai (DAI) $ 1.00 0.02%
bittensor
Bittensor (TAO) $ 426.13 1.19%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.14 0.54%
monero
Monero (XMR) $ 160.42 1.50%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.07%
whitebit
WhiteBIT Coin (WBT) $ 18.92 0.05%
stellar
Stellar (XLM) $ 0.091385 0.28%
ethereum-classic
Ethereum Classic (ETC) $ 17.89 0.64%
kaspa
Kaspa (KAS) $ 0.105041 3.81%
first-digital-usd
First Digital USD (FDUSD) $ 0.999503 0.05%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.297496 0.76%
blockstack
Stacks (STX) $ 1.50 1.82%
okb
OKB (OKB) $ 37.34 0.68%
dogwifcoin
dogwifhat (WIF) $ 2.04 1.23%
filecoin
Filecoin (FIL) $ 3.34 0.44%
aave
Aave (AAVE) $ 131.44 0.46%
crypto-com-chain
Cronos (CRO) $ 0.071547 0.31%
arbitrum
Arbitrum (ARB) $ 0.480265 0.75%
mantle
Mantle (MNT) $ 0.555193 1.25%
immutable-x
Immutable (IMX) $ 1.07 0.21%