Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Asia FX Eyes Weekly Losses, Japanese Yen Supported by Intervention

Forex Sep 23, 2022 11:12
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
USD/JPY
-0.07%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DX
-0.35%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DXY
-0.42%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
USD/INR
+0.12%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
USD/CNY
-0.50%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
USD/IDR
-0.23%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Ambar Warrick

Investing.com-- Most Asian currencies fell further on Friday and were headed for steep weekly losses as hawkish signals from the U.S. Federal Reserve boosted the dollar, while government intervention in currency markets supported the Japanese yen.

The yen rose 0.2% to 142.09 to the dollar, recovering from a 24-year low on reports that Japanese authorities had bought yen on the open market to boost the weakened currency.

The intervention helped the yen recover from the double whammy of a hawkish Fed as the BoJ maintained its ultra-loose monetary policy despite economic pressure from rising inflation and slowing growth. The currency was set to rise 0.6% this week after five straight weeks of losses.

Still, the outlook for the yen remains dim, given that the BoJ is now the only central bank in the world to maintain negative interest rates, putting it at odds with rising lending rates across the globe. This has severely pressured the yen this year, and also caused considerable weakness in the Japanese economy.

Broader Asian currencies were still reeling from a Fed rate hike earlier this week, where the central bank struck a more hawkish tone than expected.

The dollar index and futures were largely unchanged on Friday, but remained pinned near 20-year highs. They were set to rise 1.5% each this week.

U.S. Treasury yields also rose, further pressuring Asian markets.

China’s yuan slipped 0.2%, hitting a fresh two-year low of 7.0957 against the dollar, while the Indian rupee hovered around record lows of 81. Both currencies were set to lose about 1.8% each this week.

The yuan is also among the worst-hit Asian currencies this year, as the People’s Bank of China began trimming interest rates to support economic growth, going against the trend of rising global rates.

On the other hand, the Philippine peso rose 0.2%, recovering slightly from a record low after the central bank hiked interest rates as expected. The country, like most others in Asia, is facing elevated inflation levels amid rising commodity prices.

Losses in the Indonesian rupiah were also limited after the central bank hiked rates by more than expected on Thursday.

Asia FX Eyes Weekly Losses, Japanese Yen Supported by Intervention
 

Related Articles

Asia FX Sees Little Relief as Dollar Resumes Climb
Asia FX Sees Little Relief as Dollar Resumes Climb By Investing.com - Sep 29, 2022

By Ambar Warrick  Investing.com-- Most Asian currencies fell on Thursday, taking little support from a recent dip in the dollar as fears of rising interest rates and a looming...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email