Investing.com – Most Asian currencies were little changed on Thursday, while the dollar steadied as traders awaited key inflation data and Federal Reserve policymakers for further interest rate signals.
The Japanese yen steadied after recent losses, with the pair hovering below its highest level in 34 years after a host of government officials warned they could intervene in currency markets.
Asian currencies broadly also took big losses this week as uncertainty over U.S. interest rates pushed traders toward the dollar and other safe havens. Some hawkish comments from the Fed also made a difference, with Governor Christopher Waller warning that the central bank has little incentive to cut interest rates early.
USDJPY stabilizes below 1990 highs as interventions watch
USDJPY was little changed on Thursday after rising to 151.97 on Wednesday, its highest level since mid-1990.
The pair rose mainly due to the weakness of the yen after Bank of Japan officials expressed a dovish view on further tightening of monetary policy.
However, the sharp losses in the yen have traders wary of any potential intervention by the Japanese government in the foreign exchange market. A slew of senior financial and currency officials have warned they may take strict measures to curb the yen’s weakness.
USDJPY’s previous breakout of the 1990 highs, which occurred in late 2022, triggered record dollar sales by the Japanese government.
The strengthening of the dollar also put pressure on the yen.
Dollar stabilizes near 1-month high amid PCE data and rumored Fed speeches
The index was little changed in Asian trading on Thursday and was within sight of one-month highs as traders remained biased towards the US dollar ahead of further interest rate signals.
The data, the Fed’s preferred measure of inflation, will be released on Friday. Although markets will be closed for Good Friday, the data is expected to influence the Fed’s interest rate outlook.
and are also set to perform at select events on Friday.
Asian currencies were little changed on Friday as sentiment remained on edge ahead of fresh signals from the Fed.
The Chinese yuan stabilized after recent weakness, with the pair remaining well above the 7.2 level, even as the People’s Bank of China set a substantially higher-than-expected midpoint to stem further yuan losses.
The Australian dollar stands still, the pair moves little amid mixed data. While retail spending rose in February, driven by one-time spending at Taylor Swift concerts, underlying spending remained weak.
The Singapore dollar was little changed, while the South Korean won rose 0.4%.
The Indian rupee remains close to a record low, with the pair holding well above 83.