Bitcoin price today: tumbles below $90k as Fed cut doubts spark risk-off mood
Investing.com-- Most Asian currencies edged lower on Tuesday as uncertainty over a U.S. interest-rate cut next month eclipsed risk appetite, while the Japanese yen hovered near nine-month lows amid heightened fiscal concerns in Tokyo.
The US Dollar Index, which measures the greenback against a basket of major currencies, ticked down 0.1%. US Dollar Index Futures also traded 0.1% lower as of 04:27 GMT.
Japanese yen near 9-mth low amid fiscal concerns
The Japanese yen gained slightly after hitting lows last seen in February, with the USD/JPY pair ticking down 0.2%.
Long-term Japanese government bond yields climbed to multi-decade highs, with the 20-year yield reaching record highs.
Investors have grown increasingly concerned that new fiscal measures under Prime Minister Sanae Takaichi’s administration could add to Japan’s already heavy debt load.
Takaichi is reportedly preparing to unveil her first economic package as early as this week. A Reuters report stated that Goushi Kataoka, a private-sector member of a key government panel, said Japan needs a stimulus package of about $149 billion to bolster the economy.
Reports have also suggested the plan may include tax cuts aimed at boosting investment and consumption. Finance Minister Satsuki Katayama on Tuesday expressed concern over recent foreign exchange movements, saying the government was watching the market with a heightened sense of urgency.
Fed rate uncertainty weighs on Asia FX
Market expectations for a December rate cut have become less certain after mixed signals from the Federal Reserve.
Governor Christopher Waller said in a speech on Monday that a cut could be justified if labour market conditions continued to soften, but he also cautioned that policymakers still lack sufficient data after weeks of delayed releases caused by the recent U.S. government shutdown.
Other Fed officials have signalled reluctance to ease further, leaving investors unsure of the central bank’s next move.
The data backlog will begin to clear this week, with the September non-farm payrolls report scheduled for release on Thursday. The figures were originally due last month but were postponed during the shutdown, leaving the Fed and markets without key readings on employment and wages.
Back in Asia, the South Korean won’s USD/KRW rose 0.3% while the Singapore dollar’s USD/SGD traded flat.
The Australian dollar’s AUD/USD pair fell 0.4% on Tuesday.
The Chinese yuan’s onshore USD/CNY and offshore pair USD/CNH ticked 0.1% higher each.
The Indian rupee’s USD/INR pair was largely muted.