Forex News

Asia FX slips as dollar steadies ahead of U.S. CPI data

2022.11.09 23:56



© Reuters.

By Ambar Warrick

Investing.com– Most Asian currencies retreated on Thursday, while the dollar recovered from recent losses as focus turned to upcoming CPI inflation data that is widely expected to set the tone for U.S. monetary policy in the near-term.

was among the worst performers in the region, down 0.3% amid dwindling hopes that the country will relax its strict anti-COVID measures in the near-term.

Weak economic data released this week also brewed more concerns over the world’s second-largest economy, which is struggling to control its worst COVID outbreak since May. This saw the reintroduction of COVID curbs in several major economic centers.

Economic ructions in China have soured sentiment towards most economies in the region, particularly those with large trade exposure to the country. The and the fell 0.2% each, while the lost 0.3%.

The rose slightly to the dollar, but a recovery rally in the currency now appeared to have cooled as the dollar found its footing.

The and fell 0.3%, but retained most of a 0.8% jump from Wednesday as markets awaited U.S. due later in the day. The reading is expected to show that U.S. price pressures were pinned near 40-year highs in October, indicating that the Fed needs to engage in much more monetary tightening to curb inflation.

Still, the dollar retreated, while Asian currencies rose in recent sessions on speculation that the Fed will lower its pace of interest rate hikes. Markets are the central bank will hike rates by a smaller 50 basis points in December, after several Fed officials voiced support for such a move.

But Minneapolis Federal Reserve Bank President Neel Kashkari warned on Wednesday that it was premature to expect a dovish pivot from the Fed, and that interest rates were set to keep rising.

This also mirrors a statement from Fed Chair Jerome Powell last week that while the bank will consider lowering its pace of rate hikes, U.S. interest rates will remain higher for longer, and likely peak at much higher levels than initially expected.

Such a scenario is likely to keep Asian currencies pressured in the near-term. Rising interest rates in the U.S. were the biggest weight on Asian currencies this year, as the gap between risky and low-risk debt narrowed.

In Southeast Asia, the fell 0.1% even as data showed the country’s unemployment rate hit its lowest since the start of the COVID-19 pandemic.



Source link

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 68,803.43 0.04%
ethereum
Ethereum (ETH) $ 2,438.23 1.29%
tether
Tether (USDT) $ 0.999834 0.02%
bnb
BNB (BNB) $ 559.00 0.17%
solana
Solana (SOL) $ 162.23 1.23%
usd-coin
USDC (USDC) $ 1.00 0.03%
xrp
XRP (XRP) $ 0.509206 0.56%
dogecoin
Dogecoin (DOGE) $ 0.171782 9.32%
staked-ether
Lido Staked Ether (STETH) $ 2,438.43 1.21%
tron
TRON (TRX) $ 0.161704 2.12%
cardano
Cardano (ADA) $ 0.331065 0.45%
the-open-network
Toncoin (TON) $ 4.60 4.87%
shiba-inu
Shiba Inu (SHIB) $ 0.000018 4.67%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,882.14 1.37%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 68,728.41 0.16%
avalanche-2
Avalanche (AVAX) $ 23.29 1.37%
weth
WETH (WETH) $ 2,438.36 1.29%
bitcoin-cash
Bitcoin Cash (BCH) $ 339.03 0.18%
chainlink
Chainlink (LINK) $ 10.60 0.37%
leo-token
LEO Token (LEO) $ 6.07 0.10%
usds
USDS (USDS) $ 0.992343 0.86%
sui
Sui (SUI) $ 1.95 3.64%
polkadot
Polkadot (DOT) $ 3.83 0.99%
litecoin
Litecoin (LTC) $ 66.13 1.18%
near
NEAR Protocol (NEAR) $ 3.73 1.55%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,562.24 1.35%
aptos
Aptos (APT) $ 8.25 0.16%
uniswap
Uniswap (UNI) $ 6.97 0.39%
pepe
Pepe (PEPE) $ 0.000008 0.51%
internet-computer
Internet Computer (ICP) $ 7.15 1.41%
dai
Dai (DAI) $ 0.999816 0.06%
bittensor
Bittensor (TAO) $ 429.23 0.35%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.18 2.68%
monero
Monero (XMR) $ 160.30 0.33%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.01%
stellar
Stellar (XLM) $ 0.092087 0.30%
whitebit
WhiteBIT Coin (WBT) $ 18.91 0.06%
ethereum-classic
Ethereum Classic (ETC) $ 18.00 0.81%
kaspa
Kaspa (KAS) $ 0.105273 2.44%
first-digital-usd
First Digital USD (FDUSD) $ 0.999698 0.11%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.299501 0.38%
blockstack
Stacks (STX) $ 1.52 2.40%
okb
OKB (OKB) $ 37.54 0.35%
dogwifcoin
dogwifhat (WIF) $ 2.07 0.20%
filecoin
Filecoin (FIL) $ 3.32 1.87%
crypto-com-chain
Cronos (CRO) $ 0.071999 0.06%
aave
Aave (AAVE) $ 130.34 0.37%
arbitrum
Arbitrum (ARB) $ 0.482958 0.95%
mantle
Mantle (MNT) $ 0.559293 1.00%
immutable-x
Immutable (IMX) $ 1.06 1.29%