Investing.com– Asian currencies were largely steady on Wednesday as the U.S. dollar held near a three-week low, with easing Treasury yields and volatile oil prices keeping investors cautious about the global economic outlook and the path of central bank policy.
The US Dollar Index was last up 0.1% at 101.77 by 01:15 ET (05:15 GMT), after falling 0.3% on Tuesday to its lowest since Oct. 1.
Lower crude prices in the previous session and falling Treasury yields reduced the greenback’s appeal.
Asia FX steady; yuan holds near 4-yr high
Currency markets remain sensitive to shifts in U.S. Treasury yields, energy prices and expectations for central bank policy.
The Japanese yen’s USD/JPY pair traded largely flat near 158 yen amid intervention fears.
The Chinese yuan’s onshore USD/CNY and offshore USD/CNH pairs were steady after hitting four-year lows in the previous session.
The yuan was supported by strong economic data and a firm daily fixing by the People’s Bank of China. China’s economy expanded 4.5% year-on-year in the third quarter, beating expectations.
The South Korean won’s USD/KRW pair fell 0.3%, while the Singapore dollar’s USD/SGD traded flat.
The Australian dollar’s AUD/USD pair rose 0.1% to $0.7010, hovering near a three-week high after Reserve Bank of Australia Deputy Governor Andrew Hauser said uncertainty remained over the need for further interest-rate increases as inflation risks worsened.
The comments reinforced expectations that the RBA could maintain a restrictive policy stance for longer.
Indian rupee extends rally; Fed, BoJ decision due next week
The Indian rupee was a standout performer, extending its winning streak as Reserve Bank of India measures to curb dollar demand and expected inflows linked to the Jio Platforms initial public offering supported the currency.
The USD/INR pair edged down 0.2% to 94.57 rupees — falling for a ninth straight session and hitting its lowest since early September.
However, rising oil prices remain a key vulnerability for the rupee, given India’s reliance on imported energy.
Brent crude rose 1.5% to above $110 a barrel in early trade on Wednesday, reflecting persistent Middle East supply concerns.
The focus will shift to a series of major central bank meetings next week, with the U.S. Federal Reserve, European Central Bank and Bank of Japan all due to announce policy decisions between October 28 and 30.
