Precise Investors Editorial Team
Broader Asian currencies steadied after gaining some ground this week
Most Asian currencies moved in a tight range on Thursday. The Japanese yen sat on some gains this week, with focus now turning to the Bank of Japan’s policy meeting, which is set to conclude on Friday. Key Japanese inflation data is also on tap.
Broader Asian currencies steadied after gaining some ground this week.
The yen’s USD/JPY pair steadied at 146.98 yen on Thursday, having gained some ground in recent sessions.
The Bank of Japan (BOJ) is widely expected to keep interest rates unchanged at the conclusion of a two-day meeting on Friday, especially in the face of heightened political uncertainty after Prime Minister Shigeru Ishiba’s abrupt resignation earlier in September.
But markets are bracing for some potentially hawkish comments from the central bank, with sticky Japanese inflation driving bets that the BOJ may yet hike rates again this year.
Japanese consumer price index inflation data for August is due before the BOJ’s decision on Friday, and is expected to show price pressures remaining sticky. Core inflation is also expected to remain well above the BOJ’s 2% annual target.
Broader Asian currencies were a mixed bag.
The yuan’s USD/CNY pair gained 0.1%, with the yuan cooling mildly after rising to near 10-month highs on sustained policy support from Beijing.
China this week pledged to roll out more stimulus aimed at boosting private spending, after a series of dismal readings on the economy.
The New Zealand dollar was the worst performer among Asia-Pacific currencies, with the NZD/USD pair dropping 0.6% after gross domestic product data showed the New Zealand economy declined in the second quarter.
The Australian dollar’s AUD/USD pair shed 0.1% after rallying to 10-month highs.
The Indian rupee’s USD/INR pair added 0.3% but remained below 88 rupees, after hitting a series of record highs in September.
The won’s USD/KRW pair added 0.3%, while the Singapore dollar’s USD/SGD pair advanced 0.1%.
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