Forex News

Asia FX muted, dollar drifts lower despite CPI surprise

2023.09.14 00:25


© Reuters.

Investing.com– Most Asian currencies kept to a tight range on Thursday, while the dollar edged lower as markets weighed stronger-than-expected inflation data against expectations that the Federal Reserve will keep rates unchanged next week. 

Data on Wednesday showed that U.S. grew slightly more than expected in August, amid rising fuel costs and steady consumer spending. 

But the reading was still insufficient in convincing markets that the Fed will hike rates next week, with .

The dollar strengthened slightly after the data, while Treasury yields settled lower in overnight trade. This presented some pressure on Asian markets, although not to the extent that traders had feared in the wake of a strong inflation reading. 

Still, more U.S. economic cues remained on tap, with and data due later in the day. 

The and fell 0.1% each in Asian trade. Strength in the , before a later in the day, also weighed on the greenback.

In Asia, the fell 0.1%, but remained well above a recent 10-month low as the People’s Bank of China (PBOC) buoyed the currency with a series of strong daily midpoint fixes.

Chinese and data is due on Friday, and is expected to offer more cues on a recovery in Asia’s largest economy.

The rose 0.1% as data showed remained steady in the second quarter.

The added 0.3%, while the rose slightly before data due later in the day.

The rose 0.2%, hovering just above a 10-month low as markets awaited more signals from the Bank of Japan on when it plans to pivot away from a negative rate regime. 

But a swathe of weak economic indicators from the country- lukewarm and declining , fed expectations that the BOJ will keep rates lower for longer. 

The rose 0.2%, buoyed by stronger-than-expected which fueled some expectations of more interest rate hikes by the Reserve Bank. 

The outlook for most Asian currencies still remained dour, given that the Fed is expected to . Rising U.S. rates had battered regional currencies through the past year, and are likely to limit any major recovery in the region.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 95,079.47 0.87%
ethereum
Ethereum (ETH) $ 3,438.67 3.87%
tether
Tether (USDT) $ 1.00 0.10%
solana
Solana (SOL) $ 238.81 3.42%
bnb
BNB (BNB) $ 640.34 1.06%
xrp
XRP (XRP) $ 1.44 7.95%
dogecoin
Dogecoin (DOGE) $ 0.401442 2.32%
usd-coin
USDC (USDC) $ 1.00 0.01%
cardano
Cardano (ADA) $ 0.988041 2.27%
staked-ether
Lido Staked Ether (STETH) $ 3,443.57 3.99%
avalanche-2
Avalanche (AVAX) $ 41.51 5.16%
tron
TRON (TRX) $ 0.196745 3.72%
the-open-network
Toncoin (TON) $ 6.08 0.21%
stellar
Stellar (XLM) $ 0.510103 6.91%
shiba-inu
Shiba Inu (SHIB) $ 0.000026 3.03%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,067.37 3.70%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 94,948.44 0.74%
polkadot
Polkadot (DOT) $ 8.38 0.66%
chainlink
Chainlink (LINK) $ 17.94 7.28%
weth
WETH (WETH) $ 3,439.44 3.99%
bitcoin-cash
Bitcoin Cash (BCH) $ 500.53 0.22%
sui
Sui (SUI) $ 3.17 3.81%
pepe
Pepe (PEPE) $ 0.000019 1.92%
near
NEAR Protocol (NEAR) $ 6.56 3.28%
leo-token
LEO Token (LEO) $ 8.31 1.59%
litecoin
Litecoin (LTC) $ 94.04 0.15%
uniswap
Uniswap (UNI) $ 11.54 11.04%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,615.02 3.78%
aptos
Aptos (APT) $ 11.98 1.03%
internet-computer
Internet Computer (ICP) $ 11.68 8.91%
usds
USDS (USDS) $ 1.00 0.30%
hedera-hashgraph
Hedera (HBAR) $ 0.136835 2.40%
crypto-com-chain
Cronos (CRO) $ 0.181951 0.28%
ethereum-classic
Ethereum Classic (ETC) $ 30.75 11.25%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.564159 5.08%
render-token
Render (RENDER) $ 7.69 3.72%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.01%
bittensor
Bittensor (TAO) $ 511.00 2.09%
kaspa
Kaspa (KAS) $ 0.149404 0.47%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.43 2.16%
arbitrum
Arbitrum (ARB) $ 0.907966 11.25%
dai
Dai (DAI) $ 1.00 0.02%
whitebit
WhiteBIT Coin (WBT) $ 24.02 0.65%
celestia
Celestia (TIA) $ 7.81 0.90%
vechain
VeChain (VET) $ 0.041354 2.65%
filecoin
Filecoin (FIL) $ 5.51 2.22%
bonk
Bonk (BONK) $ 0.000044 1.08%
okb
OKB (OKB) $ 53.52 1.28%
blockstack
Stacks (STX) $ 2.13 10.13%
dogwifcoin
dogwifhat (WIF) $ 3.17 2.84%