Precise Investors Editorial Team
The yen’s USD/JPY pair was little changed at 160.52 yen, yuan’s onshore pair USD/CNY traded flat, won’s USD/KRW edged 0.2% higher, Singapore dollar’s USD/SGD was little changed, while Australian dollar’s AUD/USD pair was also largely steady
Most Asian currencies traded in narrow ranges on Thursday as investors assessed the implications of latest Iranian and U.S. strikes on each other.
The yen’s USD/JPY pair was little changed at 160.52 yen, remaining above 160 yen – a threshold that triggered intervention by Japanese authorities in April.
Investors looked ahead to next week’s Bank of Japan policy meeting, where markets widely expect policymakers to raise interest rates to 1.0% as inflation remains above BOJ’s target.
The yuan’s onshore pair USD/CNY traded flat, while the won’s USD/KRW edged 0.2% higher.
The Indian rupee’s USD/INR pair gained 0.2%, while the Singapore dollar’s USD/SGD was little changed.
The Australian dollar’s AUD/USD pair was also largely steady.
Elsewhere, the US Dollar Index hovered near the 100 level as of 04:11 GMT, holding onto recent gains near a two-month high.
Data on Wednesday showed U.S. consumer prices accelerated in May, reinforcing expectations that the central bank could keep interest rates higher for longer.
Headline consumer prices increased at their fastest annual pace in more than three years, driven largely by higher energy costs linked to the worsening Middle East war.
However, core CPI rose 0.2% over the month after increasing 0.4% in April.
While US headline inflation was lifted by sharp gasoline and airline fare increases, other components were better behaved, leading to a softer-than-anticipated core inflation print, ING analysts said in a note.
June’s inflation rate should be pulled lower by a reversal in gasoline, but inflation remains vulnerable to ongoing volatility in energy costs, they added.
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