Precise Investors Editorial Team
The USD/JPY pair slid 0.1% to 161.60 after hovering just below Thursday’s 161.95 high, its strongest level since 1986
Asian currencies traded in tight ranges on Friday, with the yen steady near a four-decade low while most currencies were little changed.
The USD/JPY pair slid 0.1% to 161.60 after hovering just below Thursday’s 161.95 high, its strongest level since 1986. Traders remained cautious about extending bearish yen positions amid lingering risks of official intervention, even as the currency stayed near multi-decade lows.
Tokyo consumer inflation accelerated in June broadly in line with expectations, with core CPI rising to 1.6% year-on-year while the measure excluding fresh food and energy increased to 1.1%, signalling persistent underlying price pressures but offering little reason for the Bank of Japan to tighten policy more aggressively.
USD/MYR dropped 0.4% as the ringgit led gains, while USD/KRW added 0.2% and TWD/USD slid nearly 0.1% as most Asian currencies remained range-bound against a broadly firmer dollar.
Indonesia’s rupiah weakened modestly, with USD/IDR rising 0.23%, while Thailand’s baht also softened as USD/THB jumped 0.31%, reflecting continued support for the dollar from higher U.S. yields. The AUD/USD declined 0.3% to $0.6889 and the NZD/USD shed 0.2%, extending weekly declines as investors continued to favour the dollar amid expectations of further U.S. central bank tightening.
The Australian dollar also remained under pressure after this week’s sticky inflation and resilient labour market data reinforced expectations that the Reserve Bank of Australia could keep policy restrictive for longer, even as markets remain divided over whether another rate hike will be needed.
Elsewhere, the US Dollar Index was little changed at 101.43 after jumping to its strongest level in over a month earlier this week, as U.S. inflation and hawkish central bank commentary continued to support expectations that the country’s interest rates will stay higher for longer.
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