Your current location is:{Current column} >>Text
Asia FX muted, dollar struggles at 3
{Current column}67763People have watched
IntroductionUS Dollar Japanese Yen-0.20%Australian Dollar US Dollar0.09%US Dollar Singapore Dollar-0.05%US Dolla ...

Investing.com-- Most Asian currencies kept to a tight range on 2020 Forex platform regular rankingsFriday after cooling Middle East tensions helped spur strong gains earlier this week, while the dollar meandered at more-than three-year lows ahead of key inflation data.
The Taiwan dollar was a standout performer in Asia, surging to its strongest level in over three years with weakness in the greenback being a key driver of the currency’s gains.
A U.S.-brokered ceasefire between Israel and Iran appeared to be holding as of Friday morning. The announcement of the ceasefire had spurred strong gains in Asian currencies earlier this week, although they were seen cooling by Friday.
Asia FX treads water with tariff deadline in focus
Broader Asian currencies kept to a tight range amid heightened uncertainty over the U.S. economy and President Donald Trump’s trade tariffs.
Trump’s three-month deadline for trade deals with major economies will expire in early-July, with no major agreements being achieved so far. A lack of trade deals could see the president proceed with his plan to impose steep tariffs on major U.S. trading partners.
But Trump may also further extend the deadline, given his tendency in the past to not make good on his tariff threats. Still, uncertainty over the deadline kept risk appetite subdued.
U.S. Commerce Secretary Howard Lutnick said on Thursday that Washington had reached a trade deal with China, although he did not divulge any clear details on the purported agreement.
The Japanese yen’s USDJPY pair was flat even as Tokyo consumer inflation data read softer than expected for June, heralding a potential decline in national inflation. Softer inflation raises some doubts over whether the Bank of Japan has enough headroom to keep raising interest rates.
The Chinese yuan’s USDCNY pair rose 0.1%, while the Singapore dollar’s USDSGD pair rose 0.1%.
The Australian dollar’s AUDUSD pair was flat, as was the Indian rupee’s USDINR pair. The South Korean won’s USDKRW fell 0.2%.
Dollar steady near 3-yr low amid Fed independence jitters; PCE data awaited
The dollar index and dollar index futures both rose slightly in Asian trade on Friday, recovering some ground after falling sharply this week.
The greenback was chiefly battered by growing concerns over the independence of the Federal Reserve, especially as Trump kept up his attacks against Chair Jerome Powell and pushed his demand that the central bank cut interest rates immediately.
Powell, on the other hand, signaled no intent to cut rates soon, citing heightened uncertainty over the inflationary impact of Trump’s trade tariffs. Minneapolis Fed President Neel Kashkari also echoed this notion on Thursday evening.
Focus is now squarely on upcoming PCE price index data– the Fed’s preferred inflation gauge– for more cues on the path of interest rates. The print is due later in the day and is expected to show a mild increase in inflation.
Core PCE data is also expected to remain above the Fed’s 2% annual target.
Tags:
Related articles
White House pushes new rules for mid
{Current column}By Andrea Shalal and Pete SchroederWASHINGTON (Reuters) -The Biden administration proposed a limited ...
Read moreDow futures edge higher ahead of start of crucial Fed meeting By
{Current column}-- U.S. stock futures traded marginally higher Tuesday, as investors readied for the highly-anticipa ...
Read moreTesla supercomputer likely to boost market value by $600 billion
{Current column}(Reuters) -Tesla's Dojo supercomputer could power a near $600 billion jump in the automaker's market ...
Read more
Popular Articles
- Yellen warns U.S. could default as soon as June 1 By
- Oil at mid
- UK firm sold thousands of unverified jet engine parts
- Dollar steadies ahead of inflation data; Sterling falls on weak GDP By
- India's milk imports soar as disease hits local cattle stock By Reuters
- Inflation Promises Twist: CPI to Rise, Core CPI to Fall
Latest articles
-
Police identify two among eight dead trying to enter U.S. from Canada By Reuters
-
Oil prices fall, WTI below $90 as Fed warns of higher rates By
-
Gold prices rise ahead of central bank decisions By
-
Ukrainian minister vows more drones for strikes on Russian warships By Reuters
-
Dollar dips against euro as jobs gains offset by negative revisions By Reuters
-
Dow futures slip after Fed holds rates, Fedex adds 5.4% after earnings By