Most Asian currencies moved little on Friday as markets hunkered down before a series of major central bank meetings next week, while the Japanese yen strengthened slightly on strong inflation data, but remained close to a one-year low.<\/p>\n
The\u00a0dollar index<\/a><\/span>\u00a0and\u00a0dollar index futures<\/a><\/span>\u00a0both moved little in Asian trade, but retained most gains made this week. Treasury yields also steadied after retreating slightly in overnight trade, but remained within sight of mutli-year peaks. Data released overnight showed that the U.S.\u00a0economy grew more than expected in the third quarter<\/a><\/span>, helping improve some sentiment.<\/p>\n But anticipation of a\u00a0Federal Reserve meeting<\/a><\/span>\u00a0next week kept traders largely cautious, although the central bank is widely expected to keep rates on hold. Fed officials have flagged the possibility of at least one more rate hike this year, amid sticky inflation and a strong labor market. Strength in the U.S. economy also gives the Fed more headroom to keep rates higher for longer- a scenario that bodes poorly for most Asian currencies.<\/p>\n The\u00a0yen<\/a><\/span>\u00a0rose 0.1% as data showed\u00a0consumer inflation in Japan\u2019s capital<\/a><\/span>\u00a0grew more than expected in October, heralding a similar rise in nationwide inflation.<\/p>\n The reading could potentially set the stage for a hawkish move by the\u00a0Bank of Japan<\/a><\/span>, when it meets this coming Tuesday. While the central bank is widely expected to maintain its negative interest rates, it may further alter its yield curve control policy amid sticky inflation, rising bond yields and a severely weakened yen.<\/p>\n The Japanese currency remained above the 150 level against the dollar on Friday, fueling speculation that the government could intervene in currency markets to support the yen. Finance Minister Shunichi Suzuki said the government will continue to respond to the currency market with a \u201cstrong sense of urgency,\u201d although there appeared no signs of intervention so far.<\/p>\n Among other Asian currencies, the\u00a0South Korean won<\/a><\/span>\u00a0rose 0.3%, recovering a measure of losses earlier this week, while the\u00a0Australian dollar<\/a><\/span>\u00a0added 0.3%, also recovering after steep losses.<\/p>\n Reserve Bank of Australia Governor Michele Bullock downplayed a stronger-than-expected inflation reading this week, triggering a sharp decline in the Aussie as markets priced in a\u00a0smaller chance of a rate hike<\/a><\/span>\u00a0later in November.<\/p>\n The\u00a0Indian rupee<\/a><\/span>\u00a0rose 0.2%, taking some relief from a sharp drop in oil prices this week, although the currency still remained close to record lows.<\/p>\n The\u00a0Chinese yuan<\/a><\/span>\u00a0was flat as data showed some improvement in China\u2019s\u00a0industrial profits<\/a><\/span>\u00a0through September. But concerns over more dilution in the yuan, after Beijing announced a massive bond issuance in the fourth quarter, continued to weigh on the currency.<\/p>\n Source: https:\/\/www.investing.com\/news\/forex-news\/asia-fx-muted-as-rate-fears-mount-yen-holds-above-150-3211173<\/p>\n","protected":false},"excerpt":{"rendered":" Most Asian currencies moved little on Friday as markets hunkered down before a series of major central bank meetings next week, while the Japanese yen strengthened slightly on strong inflation data, but remained close to a one-year low. The\u00a0dollar index\u00a0and\u00a0dollar index futures\u00a0both moved little in Asian trade, but retained most gains made this week. Treasury […]<\/p>\n","protected":false},"author":1,"featured_media":1031,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-1030","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpautop"],"translation":{"provider":"WPGlobus","version":"2.10.10","language":"sv","enabled_languages":["en","nl","es","sv","fr"],"languages":{"en":{"title":true,"content":true,"excerpt":false},"nl":{"title":false,"content":false,"excerpt":false},"es":{"title":false,"content":false,"excerpt":false},"sv":{"title":false,"content":false,"excerpt":false},"fr":{"title":false,"content":false,"excerpt":false}}},"yoast_head":"\r\nJapanese yen holds above 150, BOJ awaited<\/h3>\n