Home Forex News Asia FX edges lower, dollar steady before PPI, retail sales data

Asia FX edges lower, dollar steady before PPI, retail sales data


Asia FX edges lower, dollar steady before PPI, retail sales data By Investing.com

Breaking News


AuthorAmbar WarrickCurrencies

Published Mar 14, 2024 12:09AM ET

© Reuters

Investing.com– Most Asian currencies retreated on Thursday, while the dollar steadied from recent gains as markets sought more cues on U.S. interest rates from producer inflation and retail sales data due later in the day. 

Regional currencies were still reeling from a stronger-than-expected U.S. consumer price index print earlier this week, which ramped up bets that the Federal Reserve will take its time in reducing interest rates.

Dollar steady as data dump comes before Fed meeting 

The dollar index and dollar index futures steadied in Asian trade on Thursday after reversing some of their gains earlier this week.

Focus was largely on more inflation cues from producer price index and retail sales data, especially after Tuesday’s hotter-than-expected CPI print. 

The data also comes just days before a Fed meeting next week, where the central bank is widely expected to keep rates on hold and offer scant cues on when it plans to begin trimming rates. 

Japanese yen consolidates as BOJ meeting approaches 

The Japanese yen, which had mostly outperformed its regional peers this week, relinquished a bulk of its gains on Wednesday and Thursday.

Negotiations between major Japanese employers and employee unions pointed to bumper increases in wages over the coming months- a trend that is likely to keep inflation underpinned in the coming months.

Sticky inflation and higher inflation are the two biggest considerations for the Bank of Japan to begin winding down its negative interest rates and yield curve control (YCC) policies- a scenario that bodes well for the yen.

The BOJ is set to meet next week, with media reports suggesting that an end to negative rates and YCC could come either then or during an April meeting. Recent signs of resilience in the Japanese economy also gave more credence to expectations of a less dovish BOJ.

But a former BOJ official said on Thursday that the bank will take its time in normalizing policy after ending its negative interest rate regime- indicating that Japanese interest rates will rise marginally this year. 

Broader Asian currencies trended lower as focus remained on the upcoming U.S. data. The Australian dollar fell 0.1 after strength in commodity prices pushed a currency to a near two-month high in recent sessions.

The Chinese yuan fell 0.1%, amid persistent doubts over an economic recovery in the country.

The South Korean won and Singapore dollar lost 0.2% and 0.1%, respectively, while the Indian rupee steadied after recovering sharply from the 83 level this month. 

Asia FX edges lower, dollar steady before PPI, retail sales data

Related Articles

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning
Do not sell my personal information

© 2007-2024 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Related News