Asian Currencies Turn Higher

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Asian Currencies Turn Higher

Asian Currencies Turn Higher As US Dollar Plumbs To Monthly Lows

The majority of the Asian currencies are green for the day amid rising concerns regarding the next Fed's move. The majority of the negative pressure in the USD is mainly attributed to the forecast that the Fed will move into rate cuts starting from next year.

Now, the focus has shifted towards the meeting minutes of the Fed's October meeting. Although the market isn't exactly bullish about the rate hikes, the meeting minutes will provide more insight into what's ahead in the monetary policy.

Outflow Of Funds From Greenback

At the same time, the economic situation of China is also helping to improve the market's sentiment. As a result, the funds are flowing away from safe-haven assets like the USD towards Asian currencies.

If we look at China, the government is rolling out multiple economic measures to support the property sector. This directly means more economic activity is generated in the Chinese real estate sector.

That's one of the reasons why the Chinese Yuan is one of the top currencies on Tuesday in terms of gains. Overall, the Yuan is up by +0.5% for the day and is trading against the USD at the exchange rate of 7.1346. In the context of the recent past, that's the highest level, which was only last seen in July 2023.

Another Asian currency that is green for the day is JPY, which is already up by 0.6% against the greenback. The JPY is at historic lows against the USD and is now showing its strength against the greenback.

The Taiwan Dollar has gained 0.9% in today's session amid rumors that the political party, which is pro-China, is in a better position to win the general elections.

While the Asian currencies are on the rise, the DXY is struggling, which is a sign of greenback weakness. In fact, the dollar index futures have already lost 0.2% while the rest of Tuesday's session is still remaining.

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