Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

Asia FX Moves Little in Anticipation of Red-Hot U.S. Inflation

Forex Oct 13, 2022 14:46
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
DX
+0.39%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DXY
+0.33%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
GBP/USD
-0.04%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
USD/JPY
+0.71%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
USD/INR
+0.63%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
USD/KRW
+0.83%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Ambar Warrick 

Investing.com-- Asian currencies kept to a tight range on Thursday as fears of a hawkish Federal Reserve grew ahead of key data that is expected to show U.S. CPI inflation stayed close to 40-year highs. 

The Chinese yuan fell 0.1%, while the South Korean won lost 0.2%. The Japanese yen was little changed, but was close to breaching 147, which would put it at its worst level against the dollar since 1990. 

Data on Thursday showed Japanese PPI inflation touched its highest level in 41 years in September, pointing to more pressure on the Japanese economy. 

The Indian rupee fell 0.1%, staying near record lows after data on Wednesday showed India’s CPI inflation remained overheated in September. 

The dollar index traded steady on Wednesday, staying close to a 20-year peak as investors positioned for more hawkish cues from the Federal Reserve. Minutes of the central bank’s September meeting showed on Wednesday that policymakers unanimously agreed on more monetary tightening. 

Both the dollar index and dollar futures held above 113 against a basket of currencies. Data on Wednesday also showed that U.S. PPI inflation rose more than expected in September, heralding a similar rise in CPI. 

The Fed is also set to keep interest rates elevated for longer than initially signaled, as it struggles to control rampant inflation in the country. Data later today is expected to show that U.S. CPI inflation remained above 8% in September, sticking close to a 40-year peak hit earlier in 2022. 

Rising U.S. interest rates boosted the dollar, and have weighed heavily on Asian markets this year as the yield gap between risky and low-risk debt narrowed. 

Other factors also weighed on appetite for risk-driven assets. COVID-19 cases in Shanghai rose at their fastest pace in three months this week, driving fears that China will impose more lockdowns in its largest financial hub. Focus is also on the 20th National Congress of the Chinese Communist Party this week, for more cues on Chinese policies over the next five years.

Fears of an economic meltdown in the UK, amid speculation over whether the Bank of England will withdraw its support for debt markets, also weighed on appetite. The British pound fell 0.1%, while gilt yields touched a record high this week. 

 

Asia FX Moves Little in Anticipation of Red-Hot U.S. Inflation
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email