Investing.com – Most Asian currencies were slightly lower today. Meanwhile, the US dollar was steady as traders awaited interest rate signals from the central bank this week.
The yen remains weak after strengthening following the government's market intervention in early May. But further attrition is also slowed by the possibility of another intervention.
The overall currency fell slightly as traders worried about the direction of US interest rates.
Yuan weakens after PBOC keeps interest rates unchanged
The Chinese yuan rose 0.1% to an all-time high after the People's Bank of China held steady.
Sentiment on China has improved over the past week amid stimulus and policy support from Beijing. But the yuan remains weak as increased domestic stimulus points to pressure on the currency.
Concerns about the US-China trade war are also worrying investors. Following China's imposition of new trade restrictions on some US companies. This is in response to the recent increase in US tariffs on key Chinese industries.
Concerns about China weighed on other currencies traded against the country, while the Australian dollar rose 0.1%. South Korean won rose 0.5%.
The Singapore dollar pair remains stable.
Keep an eye out for additional interventions from a weaker yen.
The yen pair rose slightly and is close to breaking the 156 yen level again today.
Although the pair fell to 151 in early May. After the intervention of the government, it returned to that level. Fears of higher US interest rates and insufficient action by the Bank of Japan continue to put pressure on the currency.
However, traders are wary of USDJPY's break of the 156 level as it could attract further government intervention.
Dollar steady ahead of further signals from central bank
And little movement in Asian markets today after last week's losses
Weaker-than-expected US consumer inflation data raised hopes that the central bank will start cutting interest rates by September. But many central bank officials cautioned that the central bank needs more assurance that inflation is slowing.
This week the market is paying attention to further signals from the central bank, with the April issue scheduled to be released on Wednesday.
Several central bank officials, particularly members of the bank's interest rate-setting committee, are set to speak this week.
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