Precise Investors Editorial Team
Investor sentiment remained cautious despite signs of diplomatic progress in the Middle East
Asian currencies were little changed on Thursday as investors cautiously monitored developments in Middle East peace negotiations.
The yen’s USD/JPY pair traded flat at 157.7 after recent intervention-backed gains, although it struggled to extend its rally as traders remained cautious about the Bank of Japan’s policy outlook.
BOJ policymakers have continued to signal rising domestic inflation pressures that could warrant further rate hikes over time.
The yuan’s onshore USD/CNY and offshore USD/CNH pairs were little changed.
The won’s USD/KRW pair edged 0.1% lower.
Investor sentiment remained cautious despite signs of diplomatic progress in the Middle East.
Iran said it had reached a preliminary understanding with Oman on a proposed shipping route through the Strait of Hormuz, a key route for around a fifth of world oil shipments, although several contentious issues remain unresolved.
Oil prices were also range-bound on Thursday, holding sharp losses from earlier this week.
Data on Thursday showed that Australia’s trade balance returned to a surplus in June, as exports rebounded on stronger shipments of non-monetary gold while imports eased slightly.
The Australian dollar’s AUD/USD pair ticked down 0.1%.
The Singapore dollar’s USD/SGD pair and the Indian rupee’s USD/INR were largely muted.
The Indian rupee was among the better-performing Asian currencies, strengthening in five out of the last seven sessions, supported by easing crude oil prices.
Rupee’s USD/INR declined 0.3% in the previous session after the Reserve Bank of India held benchmark repo rates unchanged at 5.25%, as largely expected.
The US Dollar Index held steady at 99.7 by 03:34 GMT, after slipping to its lowest level since mid-June in the previous session.
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