Jan 3, 2024: Across Asia, most currencies experienced significant declines on Wednesday, while the dollar stabilized following a notable rebound, prompted by a quest for additional Federal Reserve guidance that raised doubts about anticipated early interest rate cuts.
Market sentiment in Asia remained fragile, partly due to concerning economic data from China and the impact of a severe earthquake in Japan.
The Chinese yuan depreciated by 0.1%, although its losses were somewhat constrained by a stronger-than-expected midpoint reference rate established by the People’s Bank of China. The yuan faced renewed downward pressure this week following disappointing December purchasing managers index figures.
The Japanese yen, however, remained static as local markets were closed for a week-long holiday, limiting its movement.