Investing.com – Most Asian currencies extended losses on Wednesday as investors remained cautious ahead of possible new US tariffs under Donald Trump’s administration, while the Malaysian ringgit benefited from expectations of a central bank strike later in the day would maintain stable interest rates.
Interest rates are expected to remain stable at 3.00% for the tenth time in a row on Wednesday, thanks to robust economic growth and controlled inflation, a Reuters poll showed.
The Malaysian ringgit rose 0.6% against the US dollar, with the pair falling to 4.4465 ringgit at 03:07 GMT.
Most other regional currencies were under pressure as the dollar was slightly stronger in anticipation of additional US tariffs.
The price rose 0.2% during trading in Asia, after losing more than 1% at the beginning of the week. rose 0.1%.
The Bank of Japan expects to raise interest rates this week
The Japanese yen pair rose 0.2% ahead of the Bank of Japan’s (BoJ) two-day policy meeting starting Thursday.
The BoJ is widely expected to raise on Friday. Reuters reported last week that the central bank is likely to reiterate its commitment to further rate hikes if the economy continues its recovery.
“If the BoJ does indeed raise rates, we think the market will see another rate hike increasingly unlikely, at least until after the House of Representatives elections in July (our estimate is July),” Bank of America analysts said in a statement. a recent note.
Tariff fears persist under Trump 2.0
Trump said Tuesday he is considering imposing 10% tariffs on Chinese imports starting Feb. 1 as he raised the possibility of increased tariffs on several major economies.
Regional currencies faced downward pressure despite expectations that new rates would be phased in. If fully implemented, these tariffs could have a substantial impact on most Asian currencies, given the region’s heavy dependence on trade with China.
The Chinese yuan’s offshore pair rose 0.3%, while the onshore pair was largely unchanged on Wednesday.
The Australian dollar pair fell 0.2%.
The Singapore dollar pair rose 0.3%, while the Indian rupee pair rose 0.1% higher.
The South Korean won pair rose 0.4%. South Korea is in the midst of President Yoon Suk Yeol’s impeachment hearing over his attempt to impose martial law in the country.
Elsewhere, the Taiwan dollar rose 0.5%, while the Philippine peso rose 0.4%.
