Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Asia FX sees some relief as dollar retreats, yen at 34-year lows

Published 04/23/2024, 11:45 PM
© Reuters.

© Reuters.

USD/JPY
-0.65%
AUD/USD
0.00%
USD/SGD
-0.73%
USD/INR
-0.19%
USD/KRW
-0.04%
USD/CNY
0.00%
DX
-0.74%
DXY
-0.73%

Investing.com-- Most Asian currencies rose slightly on Wednesday, as weakness in the dollar offered some relief to regional markets, although underperformance in the Japanese yen persisted despite fears of government intervention.

The greenback retreated further from recent five-month peaks this week on some soft purchasing managers index data. But persistent bets on higher-for-longer U.S. interest rates and anticipation of more key economic readings kept traders largely biased towards the dollar. 

Yen weak as USDJPY heads towards 155 

But the Japanese yen saw little relief from a softer dollar, with the USDJPY pair trading near 34-year highs and in sight of the 155 level. 

The yen weakened even as a slew of Japanese officials warned of government intervention to support the beleaguered currency. Traders saw USDJPY at 155 as potentially attracting intervention by the government.

Weakness in the yen came ahead of a Bank of Japan meeting this Friday, where the central bank is expected to keep rates unchanged after a historic hike in March. But its outlook on inflation and economic growth will be closely watched. 

Australian dollar rallies on hotter-than-expected inflation 

The Australian dollar’s AUDUSD pair was among the best performers in Asia on Wednesday, up 0.5% at a nearly two-week high.

The currency shot up after consumer price index inflation read stronger than expected for the first quarter, pushing further above the Reserve Bank of Australia’s 2% to 3% annual target. 

The reading gives the RBA more impetus to keep interest rates higher for longer, which bodes well for the Australian dollar. 

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.

Dollar steadies from overnight losses, GDP, inflation data awaited 

The dollar index and dollar index futures moved little in Asian trade after falling sharply on Tuesday, as purchasing managers index data showed unexpected weakness in U.S. business activity. 

But the dollar retained a bulk of its gains made so far in April, as traders priced out expectations of early interest rate cuts by the Federal Reserve.

More key U.S. economic cues are due this week, with first-quarter gross domestic product data due on Thursday, while PCE price index- the Fed’s preferred inflation gauge- is due on Friday. Both readings are widely expected to factor into the central bank’s outlook on interest rates.

Weakness in the dollar offered some relief to Asian currencies, although they were still nursing losses so far in April.

The Chinese yuan’s USDCNY pair steadied close to five-month highs, amid resurgent doubts over a recovery in Asia’s largest economy. But further weakness in the yuan was limited by signs of currency market intervention by the People’s Bank.

The South Korean won’s USDKRW pair fell 0.2%, while the Singapore dollar’s USDSGD pair fell 0.1%.

The Indian rupee’s USDINR pair moved further away from record highs hit last week, but still remained well above the 83 level. 




Which stock should you buy in your very next trade?

With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities.

In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record.

With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.

Unlock ProPicks AI

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.