Asia FX muted ahead of US inflation data; USDJPY nears 152 Most Asian currencies moved little on Tuesday and the dollar steadied in anticipation of key U.S. inflation data due later this week, while the Japanese yen moved back towards 34-year lows despite repeated warnings of government intervention.

Traders remained largely wary of making big bets in anticipation of more cues on U.S. interest rates. Asian markets were also still reeling from a bumper nonfarm payrolls reading on Friday, which saw traders further price out expectations of early interest rate cuts by the Federal Reserve. 

The payrolls data kept the dollar trading strong, and also pushed up U.S. Treasury yields, which in turn weighed on Asian currencies.

USDJPY moves back towards 152 despite intervention threats 

The Japanese yen weakened slightly on Tuesday, with the USDJPY pair now moving back towards the 152 level- its highest since 1990.

Weakness in the yen came even as Japanese officials repeatedly warned that they will respond appropriately to speculation against the yen. But the odds appeared stacked against the yen, especially in the face of higher-for-longer U.S. interest rates, which have been a key weight on the Japanese currency for nearly two years.

The yen also took little support from the Bank of Japan’s first rate hike in 17 years, given that the central bank offered largely dovish signals on future policy decisions. 

Dollar steadies with CPI data, Fed minutes in focus 

The dollar index and dollar index futures moved little in Asian trade after clocking some overnight losses. But traders still remained largely biased towards the greenback ahead of more signals on U.S. interest rates this week.

Consumer price index inflation data for March is due on Wednesday and is widely expected to show inflation remaining comfortably above the Fed’s 2% annual target, giving the central bank little impetus to begin trimming rates early.

The minutes of the Fed’s March meeting are also due on Wednesday, and come amid growing doubts over whether the central bank will begin cutting interest rates in June.

A slew of Fed officials warned that sticky inflation will keep the Fed from cutting rates early this year. 

This notion weighed on most Asian currencies, keeping them in a tight range on Tuesday. The Australian dollar’s AUDUSD pair fell slightly, as data showed consumer sentiment worsened in early-April.

The Chinese yuan’s USDCNY pair remained well above the 7.2 level, as the currency was hit with increased selling on growing doubts over a Chinese economic recovery.

The South Korean won weakened, with the USDKRW pair rising 0.1%, while the Singapore dollar’s USDSGD pair tread water.

The Indian rupee’s USDINR pair moved little and remained close to record highs above the 83 level. 

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. 70.8% 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

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 (UK) 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. 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: