Most Asian currencies subdued on Friday as dollar strengthened before Federal Reserve rate decision
Chinese yuan underwhelming as underwhelming stimulus hit the currency
Concerns over interest rates tempered market enthusiasm giving dollar a boost
China underwhelmed markets with stimulus measures
Policies unlikely to provide immediate economic momentum amid deflationary pressures
Yuan under pressure due to impending U.S. tariffs
Dollar index set for best week in over a month
Markets pricing in slower pace of rate cuts in 2025
Thai baht and Indonesian rupiah weakened against the dollar
South Korean won inched higher ahead of parliamentary vote on impeaching President
Japanese yen rose on reports of Bank of Japan to keep interest rates unchanged
Other Asian currencies like Singapore dollar, Australian dollar, and Indian rupee remained relatively stable
Asian equities fell due to lack of details from Chinese economic conference and anticipation of Federal Reserve meeting next week
Japanese and Australian shares dropped after selling on Wall Street
Shares in China and Hong Kong slipped following Chinaβs Central Economic Work Conference lacking policy details
Chinese government bonds slid below 1.8% for the first time in history
Dollar strength index was stable, supported by higher Treasury yields
Data includes industrial production in Japan, gross international reserves for Thailand, and potential money supply data for China released by Dec. 15
US wholesale inflation rose due to surge in egg prices
Oil prices headed for weekly increase amid anticipation of tighter US sanctions against Iran and Russia
Gold prices rose, partially recovering from a 1.4% drop
Expectations for US rate cut next week remain high
Economic Insights in Asia
The Asian currency market saw mixed movements as most currencies remained subdued due to the strengthening of the dollar before the Federal Reserve rate decision.
The Chinese yuan faced pressure and underwhelming performance following insufficient stimulus measures.
Concerns over interest rates and market enthusiasm contributed to the boost in the dollar index, which is set for its best week in over a month.
Asian equities experienced a decline amidst a lack of clarity from the Chinese economic conference and ahead of the Federal Reserve meeting next week.
Various Asian currencies, including the Thai baht and Indonesian rupiah, weakened against the dollar, while the South Korean won and Japanese yen saw some fluctuations.
Gold prices rose, partially recovering from a recent drop, while oil prices were on track for a weekly increase due to anticipation of tighter US sanctions against Iran and Russia.
Expectations for a US rate cut next week remain high, adding to the uncertainty in the economic landscape.