Forex
Asia FX nurses losses as dollar hits 10-day high on easing rate cut bets

Investing.com– Most Asian currencies fell on Friday and were nursing steep losses against the dollar as hawkish signals on inflation and interest rates saw traders further price out expectations for rate cuts in 2024.
Sentiment towards Asian markets was also rattled by signs of a resurgent U.S.-China trade war, while the People’s Liberation Army was seen conducting extended military drills near Taiwan, ramping up tensions with Taipei.
Dollar at 10-day high as Sept rate cut bets ease
But the biggest source of pressure on Asian currencies was a rebound in the dollar, with the and steadying at 10-day highs on Friday.
The minutes of the Federal Reserve’s late-April meeting, coupled with several hawkish comments from Fed officials, saw investors grow more wary of sticky inflation, which could in turn delay any plans by the central bank to begin trimming interest rates.
This saw traders largely price out expectations for an interest rate cut in September.
The showed traders were pricing a nearly equal probability of a cut and a hold- around 46%- in September. Earlier expectations had shown an over 50% chance of a cut.
Japanese yen weakens, soft CPI offers little relief
The Japanese yen’s pair rose 0.1% on Friday to an over three-week high, extending a rebound from lows hit in the immediate wake of government intervention seen earlier in May.
The yen took little relief from data which showed inflation eased as expected in April, as spending remained weak. The reading raised more questions about just how much headroom the Bank of Japan has to tighten policy further, presenting more headwinds for the yen.
Chinese yuan losses limited by stronger PBOC fix
The Chinese yuan’s pair rose 0.05% on Friday, with further weakness in the yuan being limited by a substantially stronger midpoint fix from the People’s Bank of China.
The stronger fix came as a simmering trade war with the U.S., doubts over more stimulus measures and increased tensions with Taiwan presented a wave of selling pressure for the yuan.
The USDCNY pair was close to a six-month high.
Broader Asian currencies retreated. The South Korean won’s pair rose 0.3%%, while the Singapore dollar’s pair rose 0.1%.
The Australian dollar’s pair fell 0.2%. Most regional currencies were headed for steep weekly losses as the prospect of high for longer U.S. interest rates presented more pressure.
- Forex3 years ago
Forex Today: the dollar is gaining strength amid gloomy sentiment at the start of the Fed’s week
- Forex2 years ago
Unbiased review of Pocket Option broker
- Forex3 years ago
How is the Australian dollar doing today?
- Forex2 years ago
Dollar to pound sterling exchange rate today: Pound plummeted to its lowest since 1985
- Cryptocurrency3 years ago
What happened in the crypto market – current events today
- World2 years ago
Why are modern video games an art form?
- Commodities3 years ago
Copper continues to fall in price on expectations of lower demand in China
- Forex2 years ago
The dollar is down again against major world currencies