BENGALURU: Most Asian currencies declined on Tuesday, while equities were mixed as investors remained wary of riskier Asian assets ahead of US inflation data, which will provide clues on the Federal Reserve’s interest rate outlook.
The South Korean won and Thai baht retreated 0.7% and 0.4% respectively, while the Malaysian ringgit slipped 0.3%. The Japanese yen was hovering near a one-year low against the greenback.
Market participants are keenly eyeing the US inflation print for October, due later in the day, for hints on the Fed’s future monetary policy stance, given recent comments from Fed officials signalling uncertainty on whether the battle to subdue inflation was over.
The US dollar edged higher to 105.650 against a basket of currencies, as of 0712 GMT. The Japanese yen was last trading at 151.65 per dollar, a day after it touched 151.92 - the lowest since Oct.21 last year.
Equities in the region were largely mixed, with shares in South Korea and Malaysia each jumping 1.2% and 0.5%. Stock markets in Thailand and Philippines were down 0.6% and 0.5%, respectively.
Investors will also be focusing on China’s retail sales and industrial output data for October, expected on Wednesday, to assess its economic recovery.
China’s yuan edged lower to 7.2945 per dollar, pressured by market expectations of a further widening of the yield differential in favour of the US, as investors bet on more monetary easing in the world’s second-largest economy.
In the Philippines, all eyes are on the central bank’s monetary policy decision on Thursday. It has indicated that it is willing to take further action to contain consumer price expectations.
The Bangko Sentral ng Pilipinas (BSP) is expected to keep its key interest rate unchanged at 6.50% on Thursday, according to a Reuters poll of economists, after an off-cycle 25 basis point hike on Oct. 26.
Markets in India were closed for a public holiday.
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