The yen’s USD/JPY pair gained 0.1%, the yuan’s USD/CNY pair was flat, as was the Australian dollar’s AUD/USD pair, the Singapore dollar’s USD/SGD added 0.2%, while the won’s USD/KRW advanced 0.5% to a seven-month high
Most Asian currencies moved in a tight range on Wednesday as traders fretted over the U.S. central bank’s plans to cut interest rates in December, while the dollar steadied before a key vote to end an ongoing government shutdown in the U.S.
The yen’s USD/JPY pair gained 0.1% and was at its highest level since early-February.
The yuan’s USD/CNY pair was flat, as was the Australian dollar’s AUD/USD pair.
The Singapore dollar’s USD/SGD added 0.2%, while the won’s USD/KRW advanced 0.5% to a seven-month high.
The Indian rupee’s USD/INR pair hovered near the mid-88 rupee level, while the Taiwan dollar’s USD/TWD pair gained 0.1%.
Most currencies remained on the backfoot as uncertainty over the U.S. economy favoured the dollar and safe havens such as gold. Uncertainty over the fate of U.S. President Donald Trump’s trade tariffs, amid scrutiny of the measures by the Supreme Court, also weighed.
The dollar index and dollar index futures rose slightly in Asian trade as potential end of the longest ever U.S. government shutdown this week was also in focus.
Markets were also growing increasingly uncertain over the U.S. central bank’s plans for future interest rate cuts.
A report from the Wall Street Journal’s Nick Timiraos, known in some circles as the “Fed Whisperer,” suggested that policymakers at the central bank were increasingly fractured over whether to cut rates again in December.
Delays in economic data robbed the Fed of insight into the economy and added to this friction, Timiraos said, adding that there was a contingent of hawkish policymakers that opposed a December cut.


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