Asia FX creeps higer as dollar, yields retreat before econ data storm
Investing.com-- Most Asian currencies advanced on Tuesday, reversing some recent losses as the dollar retreated from 2023 peaks before a string of key economic readings due this week, although risk appetite still remained weak.
Soft purchasing managers index (PMI) readings from Japan and Australia also limited any major gains in regional currencies, as the data showed that business activity in some of Asia’s biggest economies was struggling to pick up.
The Japanese yen rose 0.1% after briefly sinking as low as 150 to the dollar earlier this week. Traders believe that a breach of the level will attract currency market intervention by the government.
Intervention in the bond market by the Bank of Japan, to tame overheated yields- also pressured the yen over the past week.
The Australian dollar rose 0.3%, recovering from a near 11-month low tracking some optimism over China.
The Chinese yuan added 0.2%, aided chiefly by news of a meeting between U.S. and Chinese officials to discuss domestic and global macroeconomic issues.
The meeting, which was virtual, marked some improvement in ties between the world’s largest economies, which were at lifetime lows amid disagreements over semiconductors, Taiwan and allegations of espionage and human rights abuses.
The meeting also pushed up some hopes that an ongoing trade war between the two countries will not escalate further, even as China recently blocked the export of key battery-making materials in retaliation for U.S. curbs on chip exports to the country.
But sentiment towards China still remained weak, especially amid concerns over a debt meltdown in its massive property market. These concerns had battered the yuan in recent weeks, putting it at a near one-year low.
Among
Read more on investing.com
