Asian Currencies Recover as Dollar Retreats Before More Fed Cues
Most Asian Currencies Rise on Dollar Retreat
Amid anticipation of further cues from the Federal Reserve on interest rates, most Asian currencies rose on Wednesday as the dollar retreated, offering some relief to regional markets.
Greenback’s Retreat Offers Relief to Asian Markets
Despite nursing recent steep losses, regional units saw relief as the greenback retreated significantly from recent highs this week, easing pressure on Asian markets.
Dollar Falls Ahead of Fed Minutes and Speakers
The dollar and euro both fell about 0.1% each in Asian trade, as investors collected profits in the greenback before a barrage of Fed cues this week.
Chinese Yuan Rises on Economic Recovery Hopes
The Chinese yuan rose 0.1% on Wednesday, benefiting from optimism over a potential economic recovery in Asia’s largest economy.
Support for Chinese Economy
The People’s Bank of China cut its five-year benchmark lending rate by a bigger-than-expected margin on Tuesday, pointing to more support for the Chinese economy.
Optimism over China and Australia
The South Korean won rose 0.3%, leading gains across Asia on optimism over China, while stronger-than-expected Australia data for the fourth quarter drove bets that the Reserve Bank will keep interest rates higher for longer.
The Japanese yen rose 0.1% but remained at the 150 level. Data showed a bigger-than-expected increase in Japanese household spending in January, while industrial production contracted more than expected.
The Thai baht and Indonesian rupiah both traded sideways, while the Indian rupee was flat after strengthening further away from the 83 level in overnight trade.