Asian Currencies Consolidate; May Weaken on Growing Fed Rate-Hike Prospects
Dow Jones
Yesterday
0021 GMT - Asian currencies consolidate against the dollar in early trade, but may weaken on growing prospects of Fed rate hikes that typically increase the appeal of U.S. fixed-income assets. Although Fed Chairman Warsh's speech on Friday isn't a "pre-commitment to a Sep hike, it reinforced the Fed's inflation-fighting credibility and kept further tightening in play if inflation fails to ease meaningfully," two strategists at OCBC Group Research say in a research report. "A firmer USD can be a headwind for Asian FX," they add. The dollar is little changed at 159.98 yen and is steady at 1,377.10 won, while the Australian dollar is flat at US$0.7160, LSEG data show.
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