Asia FX retreats as Fed’s Powell rules out near

US Dollar Japanese Yen-0.17%Australian Dollar US Dollar-0.08%US Dollar Singapore Dollar-0.04%US Dollar Thai Baht0.25%US Dollar Indian Rupee-0.26%US Dollar Korean Won0.61%US Dollar Chinese Yuan0.12%USDIDX-0.08%DXY0.04%

Investing.com-- Most Asian currencies retreated on Which traders on mt4 are legitimateThursday as U.S. Federal Reserve Chair Jerome Powell ruled out near-term interest rate cuts, meanwhile the Bank of Korea kept its interest rates unchanged amid global trade tensions.

Focus for the day was also on Japan’s export data and Australia’s employment report.

The US Dollar Index, which measures the greenback against a basket of major currencies, edged up 0.2% in Asian trade but was still near its three-year low, reached last week.

Fed’s Powell says near future cuts not imminent

Fed Chair Powell on Wednesday said that the central bank was not inclined to cut interest rates in the near future, citing the inflationary pressures and economic uncertainties introduced by the new tariffs. 

"Our obligation is to keep longer-term inflation expectations well anchored and to make certain that a one-time increase in the price level does not become an ongoing inflation problem," Powell said in prepared remarks at the Economic Club of Chicago.

The Fed’s cautious stance comes amid concerns that the tariffs could lead to higher consumer prices and slower economic growth. Powell highlighted the need for a wait-and-see approach.

The Japanese yen’s USD/JPY rose 0.5% on Thursday. Data showed that Japan’s exports rose for a sixth consecutive month in March, driven by companies rushing shipments ahead of U.S. tariffs.

The Singapore dollar’s USD/SGD pair ticked gained 0.2%, while the Thai baht’s USD/THB jumped 0.7%.

The Australian dollar’s AUD/USD pair slipped 0.5%. Data on Thursday showed the country’s labor market remained hot with a rebound in employment and a slightly higher unemployment rate.

The Chinese yuan’s onshore USD/CNY pair rose 0.2%.

The Indian rupee’s USD/INR pair inched 0.1% lower.

BOK holds rates as expected, won falls

The South Korean won’s USD/KRW pair rose 0.4% on Thursday, after the Bank of Korea maintained its benchmark interest rate at 2.75%, aligning with market expectations. 

The central bank indicated a potential rate cut as early as May in response to escalating economic risks from U.S. President Donald Trump’s aggressive tariff measures.

US, Japan start tariff negotiations

Investors were cautious around Trump’s fluctuating tariff policy.

President Donald Trump announced "big progress" after meeting with a Japanese trade delegation in Washington on Wednesday, kicking off formal tariff negotiations. 

Meanwhile, a Bloomberg report revealed that China is willing to initiate trade discussions with the U.S., but insists on more respect from the White House.