Dollar Firms as Asian Currencies Wait for US-China Summit

The Asian currency markets were largely subdued on Wednesday as investors waited for the U.S.-China summit, which started later in the day. The dollar firmed up, while most other currencies remained steady.

The yen was one of the few notable gainers, rising 0.2%. However, its gains were offset by the Australian dollar's decline after a poor Purchasing Managers Index (PMI) reading for September showed a sharp deterioration in business activity.

The PMI data reflected mounting pressure on the Australian economy from sticky inflation and rising interest rates. The Reserve Bank of Australia is widely expected to raise interest rates for a fourth time this year when it meets next week, despite warnings from officials about increasingly sticky inflation.