Asian currencies mostly remained stable. The US dollar held near a three-week low.
Asian currencies mostly remained stable on Wednesday. The US dollar held near a three-week low, while the decline in US Treasury yields and volatility in oil prices made investors stay cautious.
The dollar index rose 0.1% to 101.77 points after falling 0.3% on Tuesday. Currency markets reacted sensitively to changes in bond yields, energy prices and central bank policy expectations.
The pair with the Japanese yen traded unchanged around 158 yen amid intervention concerns. The onshore and offshore pairs with the yuan remained stable after reaching four-year lows in the previous session. The yuan was supported by strong data on the Chinese economy, which grew 4.5% in the third quarter.
The pair with the South Korean won fell 0.3%, while the Singapore dollar traded unchanged. The Australian dollar rose 0.1% to 0.7010, remaining near a three-week high.
The Indian rupee continued its rise for the ninth session in a row and fell 0.2% to 94.57 rupees, reaching a low since early September. It was supported by measures from the Reserve Bank of India and expected inflows from the IPO. However, oil prices rising above 110 dollars per barrel remain a vulnerability factor for the rupee.
Next week, investors' attention will be focused on decisions from the Fed, the ECB and the Bank of Japan. The Fed is expected to keep rates unchanged, while the Bank of Japan will leave them at 1.25% after the September hike.