Precise Investors Editorial Team
The won’s USD/KRW pair edged 0.3% lower, the Australian dollar’s AUD/USD pair traded flat, the yuan’s onshore pair USD/CNY ticked up 0.1%, the Singapore dollar’s USD/SGD was little changed, while the yen’s USD/JPY pair last traded at 159.97 yen
Most Asian currencies steadied on Thursday after sharp losses in the previous session.
The won’s USD/KRW pair edged 0.3% lower after surging 1.2% in the previous session.
The Indian rupee’s USD/INR pair traded flat after adding 0.5% on Wednesday.
The Australian dollar’s AUD/USD pair also traded flat. It dropped 0.7% in the prior session.
The yuan’s onshore pair USD/CNY ticked up 0.1%, while the Singapore dollar’s USD/SGD was little changed.
The yen’s USD/JPY pair last traded at 159.97 yen, hovering near the closely watched 160 yen level, keeping traders alert for potential intervention from Tokyo authorities.
Policymakers had issued new intervention warnings on Wednesday.
Bank of Japan Governor Kazuo Ueda said on Wednesday that policymakers would need to consider raising interest rates if upside inflation risks become more significant than risks to economic growth.
Japan’s currency has come under renewed pressure, although expectations of further BOJ policy tightening have helped limit losses.
We think markets will keep testing the topside in USD/JPY, also considering June is a seasonally weak month for the yen, ING analysts said in a recent note.
In related news, the US Dollar Index was little changed in Asian trading after jumping to its strongest level in nearly two months overnight.
The U.S. dollar drew additional support from stronger-than-expected U.S. economic data released on Wednesday. Private payrolls processor ADP reported that U.S. employers added 122,000 jobs in May, signalling continued labour market resilience.
Investors also focused on the inflation component of the ISM survey, with the prices-paid gauge jumping to its highest level in nearly four years. The data reinforced concerns that inflation pressures remain higher, prompting markets to further scale back expectations for imminent central bank easing.
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