Asian foreign exchange markets showed signs of calm on Thursday following a turbulent session driven by the release of the Federal Reserve’s October meeting minutes, which revealed divisions among policymakers over the timing of further rate cuts.
The U.S. dollar strengthened after the minutes dampened expectations of a December rate cut, leading to overnight declines across Asian currencies. By Thursday morning, however, most regional units steadied:
Japanese yen: Fell to a 10-month low, pressured by worries over Japan’s fiscal stance and the absence of intervention from Tokyo.
Australian dollar: Up 0.11% against the U.S. dollar.
Singapore dollar: Gained 0.05%.
Indian rupee: Down 0.22%.
Korean won: Slipped 0.12%.
Chinese yuan (onshore): Down 0.08%.
Chinese yuan (offshore): Down 0.04%.
The U.S. Dollar Index (DXY) rose 0.04%, reflecting investor caution as markets reassessed the Fed’s policy trajectory.
Meanwhile, China kept its Loan Prime Rate (LPR) steady, signaling a cautious approach to monetary easing despite slowing growth. Analysts said the combination of Fed uncertainty and regional policy stances will keep Asian FX markets volatile in the near term.
