Currencies

 Asian currencies were largely subdued on Tuesday as markets were cautious ahead of interest rate decisions from major central banks, including the U.S. Federal Reserve.

A strong U.S. dollar and high Treasury yields are posing significant challenges for emerging economies, and policymakers have no easy way to counter this powerful one-two punch.

Most Asian currencies were subdued on Friday as the dollar strengthened ahead of a Federal Reserve rate decision next week, while disappointing cues on stimulus from a top-level meeting in China weighed on the yuan.

Most Asian currencies inched higher on Thursday as U.S. inflation data cemented bets for a Federal Reserve interest rate cut next week, while focus was on China’s annual policy meeting for clues on fresh stimulus measures.

Oil prices were little changed in Asian trade on Thursday as forecasts of weak demand and a higher-than-expected rise in U.S. gasoline and distillate inventories stemmed gains from an additional round of EU sanctions threatening Russian oil flows.

The yen pulled away from a two-week low versus the U.S. dollar on Wednesday after data showed Japanese wholesale inflation accelerated, supporting the case for a Bank of Japan interest-rate hike next week.

It is difficult to say the dollar-won rate has stabilised and the market is in a wait-and-see mood, Bank of Korea Governor Rhee Chang-yong said in a meeting with lawmakers, according to the report.

The Canadian dollar and Australian dollar were in focus on Monday ahead of their central bank meetings this week, while the euro and other major currencies lost a bit more ground to a strong U.S. dollar.

An outsized cut by the Fed earlier this year had provided some leeway to Asian central banks to cut rates, but weakening domestic currencies, and inflation staying above target range in some economies, have pushed back expectations of near-term rate cuts.

The euro was subdued on Thursday after the widely expected collapse of the French government, stoking worries about the region’s second-biggest economic power, while bitcoin galloped past $100,000 for the first time.