Updated Dec. 1, 2023 12:10 am ET
0506 GMT — USD/SGD trades steadily in the afternoon Asian session, but may be weighed by signs of easing U.S. inflation, which would back the case that the Fed’s rate-increase cycle could be over and would lead to diminished demand for the greenback. The U.S. core PCE price index, the Fed’s preferred measure of inflation, cooled in October, Maybank analysts say in an FX Research & Strategy note. Overall, the U.S. economic data released overnight appear supportive of the U.S. soft-landing narrative, the analysts add. USD/SGD is little changed at 1.3373. (ronnie.harui@wsj.com)
Most Asian Currencies Strengthen Amid Falling Treasury Yields
0125 GMT—Most Asian currencies strengthen against USD in the morning session amid falling Treasury yields, which reduce the appeal of U.S. fixed-income assets and demand for the greenback. USD could retreat further as U.S. bond yields head lower, benefiting Asian currencies, says Jeff Ng, head of Asia Macro Strategy at SMBC, in a research report. Market participants will likely monitor Fed Chair Powell’s speech due later today for any potential pivot on the Fed’s stance toward monetary easing, Ng adds. USD/JPY drops 0.3% to 147.74; USD/SGD sheds 0.1% to 1.3361; AUD/USD rises 0.2% to 0.6619. (ronnie.harui@wsj.com)
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