Forex News

Asia FX steadies as dollar slides after Fed cuts interest rates

2024.11.07 23:37

Asia FX steadies as dollar slides after Fed cuts interest rates

Investing.com– Most Asian currencies steadied on Friday after clocking sharp gains in the prior session, while the dollar nursed some losses after the Federal Reserve cut interest rates as widely expected.

Regional currencies recouped a bulk of their weekly losses after the Fed’s move, with some even turning positive for the week. The dollar, on the other hand, tumbled from four-month highs, with some traders also locking in recent gains. 

Focus was also on more cues on fiscal stimulus from China, as a meeting of the country’s Nation People’s Congress entered its final day.

Dollar nurses tumble from 4-mth high after Fed rate cut 

The and both steadied in Asian trade, steadying from a sharp drop on Thursday after the Fed to a range of 4.50% to 4.75%. 

The greenback had shot up to a four-month high earlier in the week after Donald Trump won the 2024 presidential election, with Trump’s policies potentially heralding stickier inflation in the long term.

The Fed said a change in U.S. leadership was unlikely to affect monetary policy in the near-term. Chair Jerome Powell signaled that the economy was in a good place, and that the bank was likely to ease policy further in the coming months.

Traders were seen pricing in a 76.5% chance the Fed will cut rates by 25 bps in December, and a 23.5% chance rates will remain unchanged, showed.

Chinese yuan fragile with NPC in focus 

The Chinese yuan- which was among the worst hit by dollar strength this week- weakened slightly on Friday, with the pair rising 0.2%. The pair was also set to rise 0.4% this week.

Focus was squarely on the NPC meeting, which concludes on Friday, for more cues on Beijing’s plans to roll out fiscal stimulus. 

Analysts expect the government to approve at least 10 trillion yuan ($1.6 trillion) in fresh spending for the coming years. The NPC meeting comes after Beijing announced a slew of stimulus measures over the past month, but did not specify their timing or scale.

Broader Asian currencies mostly weakened on Friday, but were sitting on strong gains from the prior session following the Federal Reserve’s interest rate cut.

The Japanese yen was an outlier, with the pair falling 0.2% and further away from three-month highs after Japanese ministers issued fresh verbal warnings over potential intervention in the currency market.

The Australian dollar’s pair fell 0.4%, but was headed for a nearly 2% weekly gain. The South Korean won’s pair rose 0.4%, while the Singapore dollar’s pair rose 0.1%.

The Indian rupee was a major laggard this week, with the pair surging to record highs above 84.4 rupees. The pair remained close to these highs on Friday. 

 



Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 75,960.35 1.57%
vested-xor
Vested XOR (VXOR) $ 3,405.08 99,999.99%
ethereum
Ethereum (ETH) $ 2,919.15 3.31%
tether
Tether (USDT) $ 1.00 0.01%
solana
Solana (SOL) $ 199.59 6.21%
bnb
BNB (BNB) $ 598.77 0.14%
usd-coin
USDC (USDC) $ 0.999999 0.02%
xrp
XRP (XRP) $ 0.549957 1.54%
dogecoin
Dogecoin (DOGE) $ 0.197862 3.03%
staked-ether
Lido Staked Ether (STETH) $ 2,916.94 3.32%
cardano
Cardano (ADA) $ 0.437195 17.63%
tron
TRON (TRX) $ 0.160594 0.78%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,451.04 2.95%
the-open-network
Toncoin (TON) $ 4.88 0.50%
shiba-inu
Shiba Inu (SHIB) $ 0.000019 2.18%
avalanche-2
Avalanche (AVAX) $ 27.48 1.24%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 75,834.32 1.41%
weth
WETH (WETH) $ 2,918.53 3.38%
chainlink
Chainlink (LINK) $ 12.81 3.33%
bitcoin-cash
Bitcoin Cash (BCH) $ 378.79 0.93%
sui
Sui (SUI) $ 2.31 2.53%
polkadot
Polkadot (DOT) $ 4.21 2.03%
leo-token
LEO Token (LEO) $ 6.33 3.40%
usds
USDS (USDS) $ 0.998978 0.61%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,068.89 3.28%
litecoin
Litecoin (LTC) $ 71.40 0.78%
uniswap
Uniswap (UNI) $ 8.86 1.06%
near
NEAR Protocol (NEAR) $ 4.22 0.81%
aptos
Aptos (APT) $ 9.72 1.12%
pepe
Pepe (PEPE) $ 0.000011 5.62%
bittensor
Bittensor (TAO) $ 507.08 3.16%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.42 2.20%
internet-computer
Internet Computer (ICP) $ 7.72 2.33%
dai
Dai (DAI) $ 0.999816 0.06%
monero
Monero (XMR) $ 164.46 1.37%
crypto-com-chain
Cronos (CRO) $ 0.110846 28.89%
stellar
Stellar (XLM) $ 0.101472 3.74%
ethereum-classic
Ethereum Classic (ETC) $ 20.19 0.02%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.17%
kaspa
Kaspa (KAS) $ 0.113617 4.58%
whitebit
WhiteBIT Coin (WBT) $ 19.63 2.06%
aave
Aave (AAVE) $ 181.17 1.09%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.343452 1.00%
blockstack
Stacks (STX) $ 1.66 1.68%
okb
OKB (OKB) $ 40.24 1.22%
first-digital-usd
First Digital USD (FDUSD) $ 0.999417 0.11%
dogwifcoin
dogwifhat (WIF) $ 2.33 0.77%
arbitrum
Arbitrum (ARB) $ 0.573594 0.62%
mantle
Mantle (MNT) $ 0.66289 7.64%
filecoin
Filecoin (FIL) $ 3.73 0.49%