Asian Currencies Steady Ahead of U.S. Inflation Data

Asian currencies traded in narrow ranges on Tuesday as investors awaited the U.S. Consumer Price Index report. The U.S. dollar remained near an 18-month high, bolstered by resilient economic growth, high Treasury yields, and safe-haven demand resulting from geopolitical tensions in the Middle East and Ukraine.

Market performance varied across the region. The Japanese yen strengthened slightly and the offshore yuan remained stable, while the South Korean won weakened. In India, the rupee maintained its recovery after the Reserve Bank of India intervened by implementing tighter derivatives restrictions to limit speculative trading and excessive dollar demand.

Simultaneously, the Reserve Bank of Australia released minutes from its September meeting, confirming a unanimous 25-basis-point interest rate increase to 4.60%. Policymakers indicated that further tightening may be necessary if inflation persists. Investors continue to monitor these trends ahead of the Federal Reserve System's policy meeting in late October.