Forex News

Asia FX sinks, dollar rises as oil rally pushes up inflation fears

2023.04.03 02:20


© Reuters.

By Ambar Warrick

Investing.com– Most Asian currencies fell on Monday, while the dollar firmed as a rally in oil markets, following a surprise OPEC+ production cut, brewed concerns that inflation could remain buoyed by high fuel prices.

A raft of weak Asian economic data also weighed, as a post-COVID rebound in China appeared to be running out of steam. The lost 0.3% after a private survey showed that the country’s barely expanded in March amid weakening output and demand.

Softening growth in China bodes poorly for broader Asian markets, given their dependence on the country as a trading hub.

On the other hand, the dollar firmed sharply against a basket of currencies, with the and up 0.5% each. The jump corresponded with a , which came after the Organization of Petroleum Exporting Countries and allies unexpectedly cut production by over 1 million barrels per day.

The move points to higher fuel costs across the globe, which in turn could feed into inflation in the coming months. This notion saw markets begin pricing in a by the Federal Reserve, according to Fed Funds futures prices.

Markets largely looked past data on Friday which showed that eased slightly more than expected in February. Focus this week is squarely on data for March, due Friday, for more cues on monetary policy.

Other Asian currencies retreated, with the down 0.5% as data that the country’s remained in contraction through March. among the country’s largest producers also read smaller than expected in the first quarter of 2023.

The led losses across Southeast Asia with a 0.7% drop, while the lost 0.3%, and was likely set for more weakness due to pressure from high oil prices.

Still, losses in the rupee were limited ahead of a meeting on Thursday, with the bank signaling that it is likely to raise interest rates further.

The fell 0.3%, also coming under pressure from growing bets that the will pause its rate hike cycle when it meets on Tuesday.

The was the worst performer in Asia for the day, down 0.8%, while the lost 0.4%.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 68,832.44 0.29%
ethereum
Ethereum (ETH) $ 2,443.56 0.60%
tether
Tether (USDT) $ 1.00 0.25%
bnb
BNB (BNB) $ 560.72 0.35%
solana
Solana (SOL) $ 163.65 0.17%
usd-coin
USDC (USDC) $ 1.00 0.12%
xrp
XRP (XRP) $ 0.507083 0.52%
dogecoin
Dogecoin (DOGE) $ 0.171162 9.42%
staked-ether
Lido Staked Ether (STETH) $ 2,441.83 0.69%
tron
TRON (TRX) $ 0.161446 1.89%
cardano
Cardano (ADA) $ 0.332348 0.97%
the-open-network
Toncoin (TON) $ 4.61 4.47%
shiba-inu
Shiba Inu (SHIB) $ 0.000018 5.38%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,890.85 0.73%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 68,733.42 0.32%
avalanche-2
Avalanche (AVAX) $ 23.44 0.28%
weth
WETH (WETH) $ 2,442.23 0.67%
bitcoin-cash
Bitcoin Cash (BCH) $ 338.94 0.40%
chainlink
Chainlink (LINK) $ 10.63 0.73%
leo-token
LEO Token (LEO) $ 6.07 0.57%
usds
USDS (USDS) $ 1.00 0.75%
sui
Sui (SUI) $ 1.94 2.83%
polkadot
Polkadot (DOT) $ 3.85 1.85%
litecoin
Litecoin (LTC) $ 65.46 1.62%
near
NEAR Protocol (NEAR) $ 3.79 3.45%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,567.78 0.85%
aptos
Aptos (APT) $ 8.42 3.29%
uniswap
Uniswap (UNI) $ 7.02 1.99%
pepe
Pepe (PEPE) $ 0.000008 0.90%
internet-computer
Internet Computer (ICP) $ 7.19 0.23%
dai
Dai (DAI) $ 1.00 0.17%
bittensor
Bittensor (TAO) $ 433.25 1.90%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.21 5.61%
monero
Monero (XMR) $ 159.58 0.17%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.39%
stellar
Stellar (XLM) $ 0.092548 0.83%
whitebit
WhiteBIT Coin (WBT) $ 18.93 0.34%
ethereum-classic
Ethereum Classic (ETC) $ 18.00 1.21%
kaspa
Kaspa (KAS) $ 0.107179 0.48%
first-digital-usd
First Digital USD (FDUSD) $ 1.00 0.55%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.300916 1.51%
blockstack
Stacks (STX) $ 1.52 2.48%
okb
OKB (OKB) $ 37.49 0.45%
dogwifcoin
dogwifhat (WIF) $ 2.09 2.23%
filecoin
Filecoin (FIL) $ 3.34 0.82%
crypto-com-chain
Cronos (CRO) $ 0.071975 0.28%
aave
Aave (AAVE) $ 129.94 0.08%
arbitrum
Arbitrum (ARB) $ 0.484515 0.41%
mantle
Mantle (MNT) $ 0.558817 0.72%
immutable-x
Immutable (IMX) $ 1.08 0.95%