Precise Investors Editorial Team
The yen’s USD/JPY hovered close to the 157-yen level, while the yuan’s USD/CNY pair dropped 0.1% and remained at its strongest level in 2-½ years
Most Asian currencies moved in a flat-to-low range on Thursday. The yen and yuan were largely rangebound as a diplomatic row between Tokyo and Beijing showed few signs of easing. China was seen imposing new restrictions on Japan this week.
The Australian dollar dropped from a 15-month low after trade data for November read weaker than expected.
Broader Asian currencies mostly weakened as risk appetite remained weak in the face of heightened geopolitical tensions across the globe.
The yen’s USD/JPY hovered close to the 157-yen level, while the yuan’s USD/CNY pair dropped 0.1% and remained at its strongest level in 2-½ years.
The yen was pressured by data showing overall wage income of Japanese employees grew substantially less than expected in November. Soft wage growth challenges the Bank of Japan’s plans to hike interest rates.
Sentiment towards Japan and China was dented by a continued diplomatic row over comments made by Japanese Prime Minister Sanae Takaichi on Taiwan in late-2025.
This week, China was seen restricting shipments of items with potential defence uses to Japan, and also opened an anti-dumping probe into certain chipmaking materials from Japan.
Chinese media said Beijing is now considering curbing rare earth exports to Japan, a move that could have dire implications for Japan’s manufacturing prowess.
Asian currencies mostly dithered, while heightened global geopolitical tensions also kept markets on edge.
The Singapore dollar’s USD/SGD pair added 0.1%, while the Taiwan dollar’s USD/TWD rose 0.4%.
The won’s USD/KRW pair was flat, while the Indian rupee’s USD/INR pair hovered just below 90 rupees.
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