Asian currencies and the U.S. dollar traded quietly on Thursday as investors awaited the Federal Reserve’s Jackson Hole symposium for signals on the future of U.S. interest rates.
The U.S. Dollar Index, which tracks the greenback against major currencies, edged 0.1% higher in Asian hours. Dollar Index futures also rose by 0.1%.
Traders cautious ahead of Powell’s speech
Global focus was on the Jackson Hole symposium, where Fed Chair Jerome Powell will deliver a key speech on Friday. Traders are watching closely for signs of whether the Fed may cut rates by 25 basis points in September, after recent U.S. data showed hotter producer and import prices.
Powell’s address comes amid pressure from President Donald Trump for rate cuts, raising concerns about the Fed’s independence. Analysts at ING noted that Powell is unlikely to sound outright dovish. Instead, he may take a balanced to hawkish stance, keeping policy options open until the September 17 rate decision.
Asian currencies muted; Japan PMI in focus
The Japanese yen (USD/JPY) was steady after data showed factory activity contracted at a slower pace in August, signaling a possible return to growth.
In China, the onshore yuan (USD/CNY) was flat, while the offshore yuan (USD/CNH) slipped 0.1%. The People’s Bank of China kept its loan prime rates unchanged a day earlier.
Elsewhere, the Australian dollar (AUD/USD) dipped 0.2%. The South Korean won (USD/KRW) held steady, while the Singapore dollar (USD/SGD) gained 0.1%.
The Indian rupee (USD/INR) was little changed, and the Indonesian rupiah (USD/IDR) rose 0.3%.
