Dollar Edges Higher Ahead of Trump-Xi Summit Amid Oil Price Relief
Asian currencies remained largely unchanged on Wednesday, while the US dollar edged higher as investors await the outcome of the upcoming U.S.-China summit. The dollar's gain was tempered by caution ahead of the meeting between Presidents Donald Trump and Xi Jinping.
The Australian dollar lagged behind its peers after purchasing managers index data showed a sharp decline in business activity in September, due to rising inflation and interest rates.
Oil prices dropped sharply following news that US officials had held talks with Iranian counterparts on the sidelines of a United Nations meeting. This sent some relief to currency markets, which have been under pressure from rising oil costs.
The Reserve Bank of Australia is expected to raise interest rates for a fourth time this year when it meets next week, despite warnings from officials about increasingly sticky inflation.