Emerging Asian currencies largely held to the sidelines on Tuesday as investors were reluctant to make any big bets ahead of US retail sales and a host of speeches from Federal Reserve officials later in the global day. Market focus is firmly on a widely-expected US Federal Reserve rate cut later this month, with traders keenly assessing data from the world's largest economy to gauge the extent to which the Fed might be willing to ease monetary policy.
"A very cautious start for risk assets this morning with trader positioning gingerly knowing that the rest of the week is potholed by Fed speakers and critical US data releases," Stephen Innes, managing partner at Vanguard Markets Pte Ltd said in a note. Fed Chairman Jerome Powell and Federal Reserve Governor Michelle Bowman will be among those making speeches later in the day.
US industrial production data is also due later, while the Fed will release its key Beige Book on US economic conditions on Wednesday, which investors will study for insight on how trade tensions are affecting the business outlook.
The Philippine peso firmed 0.1% to a near 1-1/2-year high, while South Korean won gained slightly. The Chinese yuan was 0.1% higher. Most Asian currencies had advanced in the previous session after monthly Chinese data showed signs that Beijing's stepped-up stimulus efforts might be helping to stabilize the world's second largest economy. The Indian rupee slipped 0.1% and was the top loser in the region.
Data on Monday showed that India's imports declined to their lowest level in four months in June, down 9% from a year ago, indicating weakening consumption in Asia's third largest economy. The dismal figures added to worries that India's economy may have slowed further in April-June after growth slipped to a five-year low in the first quarter. Trading in Thailand was closed on account of a regional holiday.
Comments
Comments are closed.