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Investing.com-- Asian currencies edged lower on Wednesday, led by losses in the South Korean won and Australian dollar, as investors awaited the delayed U.S. jobs report and weighed uncertainty around the Federal Reserve’s rate outlook.
The US Dollar Index, which measures the greenback against a basket of major currencies, rose 0.1%. US Dollar Index Futures also traded 0.1% higher as of 04:26 GMT.
US jobs data awaited to gauge Fed path
The September U.S. non‑farm payrolls report, postponed due to last month’s government shutdown, is scheduled for release on Thursday.
Market participants are watching closely for signals on labor market strength and wage pressures. A weaker-than-expected reading could boost hopes for a Federal Reserve rate cut.
Federal Reserve officials have recently signaled caution on further rate reductions. Inflation remains elevated, and economic growth has been resilient, leaving markets to price only a moderate chance of a 25 basis point cut in December.
The U.S. dollar has remained firm amid this cautious sentiment, pressuring Asian currencies.
Adding to market uncertainty, U.S. President Donald Trump said he has decided on his preferred choice for the next Federal Reserve chair and may announce it soon. While current chair Jerome Powell’s term runs through May 2026, speculation about a new nominee has unsettled investors concerned about central bank independence.
Back in Asia, the South Korean won’s USD/KRW jumped 0.6%, while the Singapore dollar’s USD/SGD edged up 0.1%.
The Indian rupee’s USD/INR gained 0.1%.
In China, the yuan’s onshore pair USD/CNY was little changed, while the offshore pair USD/CNH ticked 0.1% higher.
Japanese yen ticks up after 9-mth low
In Japan, long-term government bond yields surged to multi-decade highs amid concerns over fiscal policy and debt. The 10-year and 20-year Japanese government bond yields climbed sharply as investors questioned the sustainability of expansionary fiscal measures.
The yen was largely steady after weakening to a nine-month low in the previous session, with USD/JPY trading 0.1% down at 155.40.
The Australian dollar’s AUD/USD pair fell 0.4%. The fall came despite wage growth in the third quarter remaining steady, reinforcing expectations that the Reserve Bank of Australia would keep interest rates on hold.