Asian currencies kept to a tight range on Friday, while the dollar extended recent losses.
Most Asian currencies kept to a tight range on Friday, while the dollar extended recent losses as markets remained largely convinced that the Federal Reserve will cut interest rates further in October.
Caution over simmering U.S.-China trade tensions and an ongoing U.S. government shutdown also weighed on the dollar, putting it on course for its worst week in almost three months.
Most Asian currencies were sitting on weekly gains, with the Japanese yen among the best performers on emerging doubts over fiscal spending and interest rates. The Indian rupee also outperformed on central bank intervention and hopes of a thaw in trade relations with the United States.
Japanese yen upbeat as BOJ’s Ueda talks rate hikes
The Japanese yen firmed on Friday, with the USD/JPY pair falling 0.2%. The pair was also down nearly 0.7% this week.
Bank of Japan Governor Kazuo Ueda said on Thursday that the central bank will keep raising interest rates if confidence in achieving its economic targets improves.