But the Aussie was set to lose over 2% this week, after the RBA struck a somewhat dovish tone.
Investing.com– Most Asian currencies moved in a flat-to-low range on Friday, while the dollar held on to recent gains as comments from Federal Reserve officials saw traders reassess expectations of no more interest rate hikes.
Expectations for an end to the Fed’s rate hikes had flared up last week after traders interpreted Powell’s comments at a meeting as seemingly less hawkish. While a bulk of these bets persisted, markets now grew less confident that the bank will .
Broader Asian currencies also moved little on Friday, with losing 0.1%. The flagged more upside potential for inflation in a quarterly monetary policy review, reiterating its comments made after an interest rate hike earlier this week.
The rose 0.2%, while the Indian rupee hovered near record lows, although steeper losses in the rupee were somewhat eased by steep declines in oil prices.
The and moved little in Asian trade on Friday, but were set to add about 0.8% this week after a string of hawkish comments from Fed officials.
said on Thursday that the Fed was still not convinced that monetary policy remained sufficiently restrictive, and warned that the bank stood ready to hike rates further, if necessary.
His comments came after a string of other Fed officials presented a similar rhetoric, and saw markets reconsider expectations that the Fed was done hiking rates. Sticky inflation and resilience in the U.S. economy are expected to keep the Fed hawkish in the coming months.
Concerns over an economic slowdown in China also dented sentiment towards Asia, following a string of weak data prints for October. While the data pushed up hopes for more stimulus measures from Beijing, it pointed to sustained weakness in the , which fell 0.1% and was headed for a muted weekly finish.
U.S. Treasury yields also shot up in overnight trade, further pressuring regional markets.
