2023-04-17 07:30:08
Most Asian currencies fell on Monday (17th) as hawkish comments from U.S. Federal Reserve officials renewed concerns about rising interest rates, which in turn helped the dollar extend last week’s rebound from a one-year low.
dollar indexThey rose 0.2 percent on Monday, extending Friday’s gains after Fed Governor Christopher Waller called for further rate hikes despite signs that inflation is slowing.
Waller, who has been viewed as a hawk, said the Fed has not made much progress in keeping inflation within its 2 percent target. The comments prompted markets to see a higher chance of further rate hikes in May, while lowering expectations for a pause in rate hikes in June.
wonIt was the worst performing Asian currency, down 0.7 percent, while the Indonesian rupiah also fell 0.6 percent ahead of the central bank’s rate decision this week.
Among other major currencies,JPYdown 0.1%,RMBdown 0.1%.
China will release key data on first-quarter economic growth on Tuesday, which is expected to improve after the country quickly eased most epidemic prevention restrictions, but medium-term lending rates remained at historically low levels on Monday, hurting the exchange rate. China will also release data on industrial production and retail sales on Tuesday.
ING analysts said the move by the People’s Bank of China showed the central bank was not “particularly concerned” about the economic recovery, but warned that the growth rebound in the first quarter was expected to be limited.
The Indian rupee traded sideways on Monday ahead of the government’s wholesale price index inflation data, which is expected to show a further slowdown in inflation.
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