Asian currencies hold steady in narrow trade; Chinese Yuan eases after four-day rally
Asian currencies held mostly steady in tight range trade against a firmer dollar on Friday, while the Chinese Yuan snapped four straight sessions of gains as tight offshore liquidity eased.
Investors refrained from making major trades ahead of non-farm payrolls data from the United States due later on Friday, which could bolster the odds for an interest rate rise in June. A solid number will support the outlook for another rate hike by the year-end, likely in September.
“The U.S. wage data is partially the reason why markets have been subdued in Asia this morning, as it could cement a rate hike in June and support the dollar, which would cause Asian currencies to retreat,” said Khoon Goh, head of Asia research at Australia and New Zealand Banking Group in Singapore.
“There isn’t much of a lead for Asian currencies today.”