Asia FX Slammed by Recession Jitters, Yen Slips Past 150 on Hot CPI By Investing.com



By Ambar Warrick

Investing.com– Asian currencies fell sharply on Friday, with the Japanese yen hitting a new 32-year low against the dollar as a spike in Treasury yields and growing fears of a U.S. recession depleted appetite for risk-heavy assets.

The sank 0.1%, reaching a 32-year low of 150.29 to the dollar after data showed Japanese hit an eight-year high in September. The reading points to more pressure on the world’s third-largest economy in the coming months, and will also provide headwinds to the as it struggles to maintain its accommodative stance.

Short sellers of the yen were undeterred by verbal threats of foreign exchange intervention by the Japanese government. The government’s intervention in September had only temporarily paused the yen’s descent, which is down nearly 31% this year. The Japanese currency is also set to lose 1% this week in its tenth straight week of losses.

The slipped 0.4% on Friday and traded near a 14-year low against the dollar, amid growing uncertainty over the Chinese economy after the delay of key third-quarter GDP data. The fell 0.1% and traded close to record lows.

Reports of easing quarantine measures in Beijing did little to lift sentiment towards the country, given that President Xi Jinping signaled earlier this week that China’s strict zero-COVID policy is here to stay.

Asian currencies were hit hard by a spike in U.S. Treasury yields this week, following a series of hawkish comments from Federal Reserve officials. The hovered near record lows, while the led losses across Southeast Asia with a 0.6% drop. The fared slightly better than its peers, falling only 0.2% after the central bank hiked by 50 basis points on Thursday.

Philadelphia Fed President Patrick Harker warned that the central bank is actively trying to slow the economy to combat , fueling concerns that rising U.S. interest rates will trigger a recession in the world’s largest economy.

His comments added more fuel to a rally in Treasury yields, with rising 0.9% to their highest levels since the 2008 financial crisis.

The also steadied on Friday, sticking around the 113 level, as did . But the greenback was set for mild weekly losses.

Elsewhere, the fell 0.3% in volatile trade after UK Prime Minister Liz Truss after only six weeks in the role. Gilt yields surged nearly 2%.



Source link

Related articles

Financial institution of Japan Governor Ueda provides little clue on timing of charge hikes – knowledge dependent

Excessive threat warning: International change buying and selling carries a excessive degree of threat that is probably...

iOS 18.2 doubles storage wants for Apple Intelligence – and customers aren’t thrilled

In context: When Apple Intelligence launched final 12 months with iOS 18.1, the corporate introduced a 4GB storage requirement for its AI-powered options, together with Visible Intelligence and Siri with...

This rugged smartphone has the largest battery ever however its standout characteristic is its DLP projector that has a 100 Lumens brightness

Projectors are making a comeback in tablets and smartphones Oukitel WP100 Titan seems to be an improve of the 8849 Tank3 Professional we reviewed 33Ah battery is larger than any smartphone or pill...

6 Most Promising Crypto Tasks in January 2025

As the brand new yr kicks off, the crypto world is buzzing with recent tasks promising massive returns.  From meme cash to eco-friendly tokens, these six cryptocurrencies are turning heads. Right here’s why it...
spot_img

Latest articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

WP2Social Auto Publish Powered By : XYZScripts.com