Investing.com– Most Asian currencies traded in tight ranges on Tuesday as investors awaited key U.S. inflation data this week, while the U.S. dollar held near an 18-month high as elevated geopolitical risks supported demand for safe-haven assets.
The US Dollar Index edged down 0.2% to 102.44 by 23:55 ET (03:55 GMT), after rising to its highest level since April 2025 in the previous session.
U.S. inflation data on tap; oil remains elevated
Higher U.S. interest rates relative to other economies, resilient economic growth and defensive currency demand continued to underpin the greenback.
Investors were focused on the U.S. consumer price index report due on Wednesday for clues on the Federal Reserve’s monetary policy outlook.
The data are among the final major economic releases before the Fed’s late-October meeting, leaving markets cautious about taking large positions ahead of the figures.
Renewed attacks on energy infrastructure in the Middle East and Ukraine heightened geopolitical uncertainty, while elevated energy prices and Treasury yields added to the dollar’s support.
Brent crude futures eased 0.9% to $105.74 a barrel on Tuesday after rising 1.8% in the previous session.
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Asia FX muted; rupee holds gains after RBI intervention
The Japanese yen’s USD/JPY pair traded 0.2% lower.
The Chinese yuan’s offshore USD/CNH pair traded flat, while the onshore USD/CNY ticked up 0.1%.
The South Korean won’s USD/KRW pair rose 0.6% after a 0.4% fall on Monday — bucking the regional trend.
The Indian rupee remained in focus after a sharp recovery on Monday, when it posted its biggest single-day gain in six months following a package of measures by the Reserve Bank of India to curb dollar demand and speculative trading.
The USD/INR pair edged down 0.1% to 95.689 rupees after dropping more than 1% in the previous session.
The rupee closed at 95.77 per dollar on Monday after the central bank intervened in the foreign exchange market and introduced tighter restrictions on certain derivatives transactions.
Elsewhere, the Singapore dollar’s USD/SGD pair was muted.
The Australian dollar’s AUD/USD traded flat. The Reserve Bank of Australia’s September meeting minutes showed policymakers remained concerned about persistent inflation pressures.
The RBA unanimously raised its cash rate by 25 basis points to 4.60% at its September meeting, marking its fourth increase this year. The minutes indicated that several upside inflation risks identified earlier had materialised or were building, leaving the door open to another increase if price pressures proved more persistent than expected.
Original Article
Asia FX steady as dollar holds near 18-mth high, U.S. CPI awaited
U.S. dollar rises, holding near 18-month high as oil prices climb, euro weakens
Eurozone yields ease as energy pullback temporarily soothes duration fears
