
Most of the currencies in the Asian market have not demonstrated any strong movement in the latest trading session. The Wednesday trading session did not see much of an improvement in the trading prices of the Asian currencies.
Most of the currencies traded in the flat-to-low ranges in the Asian forex market. This happened because of two factors.
Mixed Results from the Chinese Economy
The first factor is the Chinese economy which has not been recovering at the pace it was expected to recover in the first place. The data coming in for the Chinese economy is somewhat mixed.
Due to the latest release of data, the Chinese economy has not shown many promising results. Therefore, traders have toned down their investments in Asian currencies.
The industrial production data was not as high as expected by the government of China. This resulted in causing a decline in the trading price of the Chinese yuan against the dollar.
The industrial production was for the month of February and its growth dimmed right after a month. The major decline in this particular factor is because of the COVID-19 situation.
Although the country has lifted the strict measures and lockdowns that were enforced by the Chinese, the country is still recovering from that.
The pre-pandemic levels for the industrial production sector are yet to be achieved by the country. Until that happens, the trading price of the Chinese yuan may not recover.
The data indicates that the economy of the country still has not recovered.
Due to the latest developments, the value of the Chinese yuan has dimmed by 0.2% against the dollar price.
While the industrial production was low, the retail sales for the month of February were high. This particular factor has helped balance the economic data of China for the month.
However, investors are still not convinced about the performance of the economy in China. They want to see more positive results before they decide to make investments in the Chinese yuan.
Despite the mixed economic performance, the country is still hoping to make a significant recovery. The government is confident that their economy will continue growing stronger making things much more favorable for the traders.
As the Chinese economy grows stronger, economies all over the Asian region will experience the same boost.
US Inflation is Lowering
When it comes to the dollar, it is also experiencing a downtrend. The data shows that the trading price of the dollar has come close to hitting a one-month low against the major currencies.
The dollar price moved into the lower levels as the inflation rates experienced a significant decline. According to the Feds, the decline was more than what the Feds had set the forecast for.
With the inflation rates coming in lower than expected, the Feds announced that they will either lower the interest rate hikes or pause them entirely.
After the latest announcement, traders knew that the dollar would end up losing its strength in the international mark.
As the sentiments lowered among the investors, the trading price of the dollar started to move downwards. For now, the traders are assessing the entire situation.
Therefore, they have paused their activity involving the USD. Until they make up their mind, the value of the dollar may either decline or stay flat against other major currencies.
Major Currencies against the Dollar
The Asian market session has shown that the trading price of the dollar has increased against the Japanese yen.
The report shows that the yen value has dipped by 0.2% against the trading value of the greenback.
The value of the Philippine peso has increased against the dollar as well. It has reportedly been pushed up 0.3% against the dollar.
The value of the Indian rupee has fallen 0.2% against the trading price of the greenback.