The Asian Currency Market: A Snapshot
Asian Currencies Hold Steady
Most Asian currencies remained stable on Tuesday, with the dollar showing resilience ahead of crucial U.S. inflation data. The Japanese yen, despite government warnings of intervention, continued its downward trend.
Market Caution Prevails
Traders exercised caution, awaiting signals on U.S. interest rates. The recent strong U.S. payrolls data bolstered the dollar and pushed up Treasury yields, impacting Asian currencies.
USDJPY Pair Continues Upswing
The Japanese yen weakened further, approaching a 34-year low against the dollar. Despite government threats of intervention, the yen struggled against the weight of sustained U.S. interest rates.
Focus on Dollar Stability
The dollar and yen showed little movement, with eyes on upcoming U.S. inflation data. Expectations are for inflation to remain above the Fed’s target, potentially delaying rate cuts.
Asian Currency Outlook
Most Asian currencies remained range-bound, influenced by global economic factors. The Australian dollar and Chinese yuan faced selling pressure, while the Indian rupee hovered near record highs.
