Asia FX Eyes Weekly Losses, Japanese Yen Supported by Intervention

By Ambar Warrick

Investing.com-- Most Asian currencies fell further on Friday and were headed for steep weekly losses as hawkish signals from the U.S. Federal Reserve boosted the dollar, while government intervention in currency markets supported the Japanese yen.

The yen rose 0.2% to 142.09 to the dollar, recovering from a 24-year low on reports that Japanese authorities had bought yen on the open market to boost the weakened currency.

The intervention helped the yen recover from the double whammy of a hawkish Fed as the BoJ maintained its ultra-loose monetary policy despite economic pressure from rising inflation and slowing growth. The currency was set to rise 0.6% this week after five straight weeks of losses.

Still, the outlook for the yen remains dim, given that the BoJ is now the only central bank in the world to maintain negative interest rates, putting it at odds with rising lending rates across the globe. This has severely pressured the yen this year, and also caused considerable weakness in the Japanese economy.

Broader Asian currencies were still reeling from a Fed rate hike earlier this week, where the central bank struck a more hawkish tone than expected.

The dollar index and futures were largely unchanged on Friday, but remained pinned near 20-year highs. They were set to rise 1.5% each this week.

U.S. Treasury yields also rose, further pressuring Asian markets.

China’s yuan slipped 0.2%, hitting a fresh two-year low of 7.0957 against the dollar, while the Indian rupee hovered around record lows of 81. Both currencies were set to lose about 1.8% each this week.

The yuan is also among the worst-hit Asian currencies this year, as the People’s Bank of China began trimming interest rates to support economic growth, going against the trend of rising global rates.

On the other hand, the Philippine peso rose 0.2%, recovering slightly from a record low after the central bank hiked interest rates as expected. The country, like most others in Asia, is facing elevated inflation levels amid rising commodity prices.

Losses in the Indonesian rupiah were also limited after the central bank hiked rates by more than expected on Thursday.

Begin trading today! Create an account by completing our form

Privacy Notice

At One Financial Markets we are committed to safeguarding your privacy.

Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.

Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.

Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.

By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Back to top

Office network
  • London Office
    One Financial Markets 

    1 Finsbury Market
    London
    EC2A 2BN
    United Kingdom


    T:  + 44 ( 0 ) 203 857 2000
    E:  info@ofmarkets.com
  • Dubai Office
    One Financial Markets 
    OT19-39 Central Park Tower
    Dubai International Finance Centre
    Dubai
    United Arab Emirates
     
    T: + 00 971 44 22 888
    E:  info@ofmarkets.com
     

One Financial Markets is the trading name of Axi Financial Services (UK) Ltd, a company registered in England with company number 6050593. Axi Financial Services Ltd is authorised and regulated by the Financial Conduct Authority in the UK (under firm reference number 466201) and the Financial Sector Conduct Authority in South Africa (with FSP number 45784).

The information on this site is not directed at residents of the United States, Belgium, Poland or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

www.onefinancialmarkets.com is owned and operated by Axi Financial Services (UK) Ltd.

Award winning broker
We have been presented with a number of awards that recognise the quality of our service and dedication to our clients :

Best FSA Regulated Broker
Saudi Money Expo

Best Education Product
Saudi Money Expo

Best Broker - Online Trading
IAIR Awards

Best Institutional Broker
Saudi Money Expo

Best FX Services Broker
CN Forex

Top International
FX Broker 2015

Saudi Money Expo

Broker of the Year
Online Trading – Middle East

IAIR Awards

Best Forex
Customer Service 2018

JFEX Awards

We accept the following payment methods: