Asian Currencies Mixed as Yen Rebounds Amid Dollar Strength
Asian currencies were mixed on Wednesday, but the Japanese yen saw significant gains after slipping for two days. The yen strengthened against the US dollar, with a price of around 101.42, and rose as much as 0.6% in early trading to 156.38.
The yen's recovery was fueled by warnings from Japanese officials about currency weakness and quarter-end flows, which also contributed to the greenback's decline. The US dollar has risen approximately 2% against the yen this month and nearly 3.8% in the third quarter.
In other developments, the Australian dollar fell below $0.70 for the first time since early August due to slightly lower-than-expected inflation data from Australia. This decline weighed on expectations of another near-term rate hike by the Reserve Bank of Australia (RBA), despite annual and underlying inflation remaining above target.
The RBA had raised its cash rate by 25 basis points to 4.60% earlier, warning about materializing inflation risks and potential further tightening.