Precise Investors Editorial Team
Improved sentiment stoked a rally in risk assets, with Asian stock markets surging on Wednesday
Most Asian currencies steadied on Wednesday after posting strong gains overnight as risk sentiment improved following signs of a potential de-escalation in the Middle East war.
The improved sentiment stoked a rally in risk assets, with Asian stock markets surging on Wednesday.
Prospects for a durable peace deal between the U.S. and Iran remain uncertain despite recent diplomatic signals, analysts at MUFG said.
They noted key sticking points, including Iran’s internal power structure, the strategic leverage of the Strait of Hormuz, and broader regional tensions, warning that even a U.S. withdrawal could leave an extremely unstable equilibrium.
The yen’s USD/JPY pair was largely muted after sliding 0.6 per cent in the previous session.
The won’s USDKRW pair edged up 0.2 per cent on Wednesday, after dropping 0.7 per cent overnight.
The Indian rupee’s USD/INR pair added 0.2 per cent to 93.68 rupees, after declining 1 per cent on Tuesday. The currency hit a record low of 95.22 rupees in the previous session.
Economic data from China also underscored underlying pressures in the region.
The RatingDog Manufacturing PMI showed factory activity expanded for a fourth straight month in March, but growth slowed and missed expectations, highlighting a moderation in momentum.
The survey pointed to sharply rising input costs, driven in part by higher oil prices linked to the Middle East war, with manufacturers facing the fastest increase in input prices since March 2022.
The yuan’s onshore pair USD/CNY pair was largely muted while the offshore pair USD/CNH ticked down 0.2 per cent.
Elsewhere, the Singapore dollar’s USD/SGD pair traded flat.
The Australian dollar’s AUD/USD advanced 0.2 per cent on Wednesday.
Comments (0)
Average Rating: No ratings yet/5 (0 reviews)
No comments yet. Be the first to comment!