Precise Investors Editorial Team
The Australian dollar was an exception, with the AUD/USD pair gaining 0.2%
Most Asian currencies kept to a tight range on Wednesday as focus was on an upcoming Bank of Japan rate decision, as well as a meeting between Chinese President Xi Jinping and U.S. President Donald Trump on Thursday.
The Australian dollar was an exception, with the AUD/USD pair gaining 0.2% to a near three-week high after stronger-than-expected consumer inflation data wiped out expectations for more interest rate cuts by the RBA.
Asian currencies logged some strength in recent sessions, as reports of progress in China-U.S. trade relations helped support risk appetite.
The yen moved little on Wednesday, with the USD/JPY pair hovering near 152 yen.
While the yen saw some strength this week, it was nursing a decline to its lowest levels in eight months, amid growing conviction that the BOJ will not raise rates in the near-term.
The BOJ is widely expected to leave rates unchanged at the conclusion of a meeting on Thursday, especially as it grapples with bets on looser Japanese fiscal policy under Prime Minister Sanae Takaichi.
Takaichi’s election earlier this month was a major weight on the yen, as markets bet that she will ramp up fiscal spending and oppose more monetary tightening by the BOJ.
Broader Asian currencies were largely rangebound, with focus also on an upcoming meeting between Xi and Trump. The two will meet in South Korea on Thursday.
The yuan’s USD/CNY pair hovered near 7.1 yen after dropping sharply over the past month. The Taiwan dollar’s USD/TWD was also flat.
The Singapore dollar’s USD/SGD pair added 0.1%, while the won’s USD/KRW pair increased 0.2%.
The Indian rupee’s USD/INR pair gained slightly after rising back above the 88 rupee level this week.
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