Precise Investors Editorial Team
The won’s USD/KRW climbed 0.6%, the Singapore dollar’s USD/SGD rose 0.1%, the yuan’s onshore pair USD/CNY was little changed, while the offshore pair USD/CNH ticked 0.1% higher
Asian currencies edged lower on Wednesday, led by losses in the won and Australian dollar.
The won’s USD/KRW climbed 0.6%, while the Singapore dollar’s USD/SGD rose 0.1%.
The Indian rupee’s USD/INR added 0.1%.
In China, the yuan’s onshore pair USD/CNY was little changed, while the offshore pair USD/CNH ticked 0.1% higher.
In Japan, long-term government bond yields surged to multi-decade highs amid concerns over fiscal policy and debt. The 10-year and 20-year Japanese government bond yields climbed sharply as investors questioned the sustainability of expansionary fiscal measures.
The yen was largely steady after weakening to a nine-month low in the previous session, with USD/JPY trading 0.1% down at 155.40.
The US Dollar Index, which measures the dollar against major currencies, gained 0.1%. US Dollar Index Futures also traded 0.1% higher as of 04:26 GMT.
The September U.S. non‑farm payrolls report, postponed due to last month’s government shutdown, is scheduled for release on Thursday.
Market participants are watching closely for signals on labor market strength and wage pressures. A weaker-than-expected reading could boost hopes for a central bank rate cut.
Central bank officials have recently signalled caution on further rate cuts. Inflation remains higher, and economic growth has been resilient, leaving markets to price only a moderate chance of a 25 basis point cut in December.
The U.S. dollar has remained firm amid this cautious sentiment, pressuring Asian currencies.
Adding to market uncertainty, U.S. President Donald Trump said he has decided on his preferred choice for the next central bank chair and may announce it soon. While current chair Jerome Powell’s term runs through May 2026, speculation about a new nominee has unsettled investors concerned about central bank independence.
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