Asian Currencies Steady as Yen Hovers Near 160
The Asian currencies were relatively stable on Tuesday, with most trading in a tight range. The Japanese yen hovered near the closely watched level of 160 per dollar, after weakening past that mark in each of the previous two sessions.
The 159.81 price was seen for the yen's pair, as investors waited to see if authorities would intervene again to slow its decline. Bessent said he believed the Japanese government and Bank of Japan would take actions to strengthen the yen, including further interest-rate hikes.
However, the dollar pulled back on Tuesday as investors weighed the increasingly hawkish outlook for U.S. interest rates against Bessent's comments on Japan. The probability of a Fed hike this month jumped to 74% after Warsh's speech, with CME FedWatch showing a 65% chance and DBS analysts putting it at about 67%.