Dollar strengthens in the Asian FX session
2022.12.07 01:02
Dollar strengthens in the Asian FX session
Budrigannews.com – On Wednesday, the majority of Asian currencies remained within a narrow range as markets weighed growing concerns about a recession in the United States and rate hikes by the Federal Reserve against additional indications of a Chinese economic reopening.
suggested that as a result of widespread protests in the country against the imposition of new curbs over the past two months, the Chinese government is preparing to announce a larger reduction in its anti-COVID measures.
In light of the protests and a significant slowdown in the economy, major Chinese cities have already relaxed some movement restrictions and testing requirements. The nation’s current situation was the worst it had been since 2020, according to earlier data released on Wednesday.
climbed 0.2 percent to 6.9823 against the dollar, making it one of Asia’s better performers.
The and moved less than 0.2 percent in either direction compared to other currencies.
As anticipated, the trimmed its intraday losses and ended the day flat, signaling further monetary tightening to control inflation.
After data showed that grew more than expected in November, the increased by 0.3 percent, likely signaling that the central bank will raise rates again.
After extending its recovery into a second consecutive session, the dollar remained steady on Wednesday.
After rising by more than one percent from a five-month low reached on Monday, and remained around 105.5.
Executives from issued a warning that the U.S. economy may experience a recession the following year, particularly if interest rates continue to rise and inflation remains stubborn.
Inflationary pressures may last longer than anticipated, according to some stronger-than-anticipated economic readings, particularly and. This probably forces the to raise borrowing rates even more, which is definitely bad for risk-driven assets.
A combination of safe-haven investments and markets positioned for higher yields helped the dollar. This trend weighed heavily on Asian currencies in 2018.
The Fed’s meeting, which is scheduled for next week, and U.S. data due later this week are now the focus.
After data indicated that slowed during the third quarter, the trimmed most of its initial gains among Antipodean currencies.
