📉 Regional currencies affected by hawkish signals from Federal Reserve
🇺🇸 Dollar index and futures rose, indicating confidence in Federal Reserve’s rate stance
📊 First quarter GDP expected to show U.S. economy’s strength
⚖️ PCE price index data expected to show sticky inflation
🇯🇵 Japanese yen’s pair with USD fell slightly
💰 Yen’s weakness possibly curtailed by government intervention
📆 Tokyo’s inflation reading on Friday to provide Japanese economy cues
🏦 Chinese yuan weakened to six-month lows
🇦🇺 Australian dollar traded sideways after inflation reading
💵 Singapore dollar’s pair rose 0.1%
💲 South Korean won’s pair surged 0.5%
🇮🇳 Indian rupee rose slightly staying close to record highs
💶 Weaker Franc is a key risk to Swiss inflation according to SNB’s Jordan
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💰 Most emerging Asian currencies weakened due to higher US Treasury yields lifting the dollar
📉 The Philippine peso hit a 1-1/2-year low at 58.400 per dollar
🏦 The Bangko Sentral ng Pilipinas will intervene in the forex market to manage volatility
🇺🇸 Markets are monitoring the US personal consumption expenditures data for global monetary policy decisions
💸 Asian currencies are weak against the dollar
📈 Dollar is at an over 2-week high
📊 Investors are waiting for more rate and inflation cues in the market
Asian Currencies Weakened Against Dollar
Most Asian currencies experienced a weakening trend on Thursday, with the dollar reaching over two-week highs. This was largely driven by hawkish signals from the Federal Reserve, which boosted confidence in the Fed’s rate stance.
The Chinese yuan weakened to six-month lows, while the Japanese yen’s pair with the USD saw a slight decline. However, the yen’s weakness may have been curtailed by government intervention.
The Australian dollar traded sideways following an inflation reading, and the Singapore dollar’s pair rose slightly. In contrast, the South Korean won’s pair surged by 0.5%.
The Indian rupee rose slightly, remaining close to record highs. Emerging Asian currencies, in general, weakened due to higher US Treasury yields lifting the dollar.
Market Insights and Economic Indicators
Investors are eagerly awaiting the release of the first quarter GDP data, expected to showcase the strength of the US economy. Additionally, the PCE price index data is anticipated to reflect sticky inflation.
Tokyo’s upcoming inflation reading on Friday is poised to provide essential cues for the Japanese economy, while the Bangko Sentral ng Pilipinas is prepared to intervene in the forex market to manage volatility surrounding the Philippine peso.
The Swiss National Bank’s Chairman, Thomas Jordan, highlighted the weaker Franc as a key risk to Swiss inflation, underscoring the importance of monitoring currency movements and global monetary policy decisions.
In the US, markets are closely monitoring the personal consumption expenditures data for insights into future monetary policy decisions. With the dollar index at 104.60 and Fed caution on early rate cuts, market participants are eager for more rate and inflation cues to guide their strategies and investments.