Ecglcd:Chinese Yuan Weighed Down by COVID Jitters, Yen Mixed on Dovish BoJ
Ecglcd:Chinese Yuan Weighed Down by COVID Jitters, Yen Mixed on Dovish BoJ
China’s yuan lagged gains in its Asian peers on Friday as the country introduced new COVID lockdown measures, while the yen saw volatile trade amid dovish signals from the Bank of Japan (BoJ).
The yuan was largely flat to the dollar as Chinese cities including Guangzhou and Wuhan rolled out new curbs to stem a recent spike in COVID-19 cases.
The Indian rupee and Singapore dollar rose 0.2% each, with both units also set for a positive week.
The Japanese yen recovered from intraday losses to trade up 0.1% at 146.19, after the BoJ held interest rates at ultra-low levels as expected. The central bank also raised its inflation forecast for 2022, indicating more near-term pain for the Japanese economy.
Data earlier on Friday showed that inflation in Tokyo hit a 33-year high in October. The figure likely signals a similar jump in nationwide inflation for the month.
The yen is among the worst-performing Asian currencies this year, down around 30% for the year as a growing gap between local and foreign interest rates dented its appeal.
But the yen was set to end the week higher, taking support from a softer dollar and retreating U.S. Treasury yields.
Sentiment turned positive after data showed the U.S. economy grew more than expected in the third quarter. The reading also showed that U.S. inflationary pressures did not have as bad an impact on the economy as initially feared.
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