Asian Currencies Rise as Dollar Retreats Ahead of Fed Cues
Asian Currencies Find Relief as Dollar Retreats
Most Asian currencies saw a rise on Wednesday as the dollar retreated, providing some relief in anticipation of more cues from the Federal Reserve on the path of interest rates.
Regional Units Still Recovering from Recent Losses
Despite the recent steep losses, regional units were still nursing their wounds as the dollar raced to three-month highs due to waning expectations of early interest rate cuts by the Fed.
Greenback Retreat Offers Relief to Asian Markets
The greenback’s retreat from recent highs this week offered some much-needed relief to Asian markets.
Dollar Falls Ahead of Fed Minutes and Speakers
The dollar fell about 0.1% in Asian trade, with investors collecting profits 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.
Increased Consumer Spending and Travel Demand Drive Optimism
Data showing increased consumer spending and travel demand during the Lunar New Year holiday drove up hopes over a bigger recovery in consumption, a key driver of the Chinese economy.
People’s Bank of China Cuts Five-Year Loan Prime Rate
The People’s Bank of China cut its five-year loan prime rate by a bigger-than-expected margin on Tuesday, pointing to more support for the Chinese economy.
Optimism Over China and Australian Data Drive Currency Gains
The Thai baht rose 0.3%, leading gains across Asia on optimism over China, while stronger-than-expected Australian data for the fourth quarter drove bets that the Reserve Bank will keep interest rates higher for longer.
Japanese Yen and Korean Won Trade Sideways
The Japanese yen and Korean won both traded sideways.
Indonesian Rupiah Remains Stable
The Indonesian rupiah was flat after strengthening further away from the 83 level in overnight trade.
