Investing.com – Asian currencies remained mostly flat on Monday, while the dollar remained stagnant on light trading volume. While markets await further signals on US interest rates from this week's inflation report.
Market holidays in the UK and US mean trading volumes are limited. Such as not having enough signals.
Most currencies in the region continued to face losses since last week. After the Fed's warning, traders lowered their hopes for a cut in US interest rates.
The dollar is at a standstill. Monitor PCE inflation data
There was slight movement in the Asian market after its recovery last week.
This week, market attention will be focused on price index data. This is the measure of inflation that the Fed has confidence in on Friday.
The dollar strengthened in the last session. This is because traders lowered their expectations for a Federal Reserve rate cut this year.
Traders are now speculating on the Fed's chances of keeping interest rates steady even in September, as Fed data showed.
The long-term trend of higher interest rates is positive for the dollar. This is not good for risky Asian currencies.
The yen strengthens but other Asian currencies remain stable.
Yen currency pairs are falling today. As trading volumes decline, traders are preparing for government intervention.
The Japanese government last intervened during the labor market holiday on May 1, causing heavy losses for USD/JPY, but the pair has since recovered in May.
Inflation data based in Tokyo along with information will be revealed this week.
Other Asian currencies remained stable, with the Australian dollar rising 0.1%, while currency pairs rose and the yuan rose slightly after a stronger-than-expected mid-point exchange rate adjustment by the central bank.
Today's data shows that China's GDP continued to grow in April
The South Korean won currency pair fell slightly. While the Singapore dollar currency pair remains stable.
The Indian Rupee currency pair also moved slightly. But it fell sharply from the highs seen over the past two weeks.
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