Precise Investors Editorial Team
Focus was also firmly on Japan, where the Bank of Japan began a two-day policy meeting on Thursday
Most Asian currencies were largely unchanged on Thursday as investor attention turned to a potential rate hike by the Bank of Japan.
The won’s USD/KRW pair edged up 0.2%, while the Singapore dollar’s USD/SGD traded flat.
The Indian rupee’s USD/INR added 0.2% after slipping sharply from record highs in the previous session due to possible central bank intervention.
In China, the yuan’s onshore pair USD/CNY was little changed.
The Australian dollar’s AUD/USD pair ticked down 0.1%.
Focus was also firmly on Japan, where the Bank of Japan began a two-day policy meeting on Thursday. The central bank is widely expected to deliver a rate hike on Friday as it continues to normalise policy after years of ultra-loose settings.
Persistent inflation above the BOJ’s 2% target, rising wages, and improving domestic demand have strengthened the case for further tightening, even as global growth concerns linger.
The yen’s USD/JPY pair edged 0.1% higher.
With markets already pricing in a potential BOJ hike, forward guidance on the policy path will be critical for shaping the yen’s outlook, MUFG analysts said in a note.
The US Dollar Index, which measures the dollar against a basket of major currencies, was steady. US Dollar Index Futures traded 0.1% higher as of 04:40 GMT.
Trading in the region was subdued as markets also awaited the U.S. consumer price index, which is expected to provide new guidance on the U.S. central bank’s interest rate outlook.
The data follow U.S. labour market figures released earlier this week that showed signs of cooling but failed to deliver a clear signal on when the central bank might begin easing policy, leaving currency markets without strong direction.
Comments (0)
Average Rating: No ratings yet/5 (0 reviews)
No comments yet. Be the first to comment!