By Ambar Warrick

Investing.com — Asian currencies moved in a flat-to-low vary on Wednesday, whereas the greenback caught to two-month lows as weak financial knowledge fueled growing issues over an financial slowdown this 12 months.

The was the only outlier amongst world currencies, rallying 0.6% after the hiked charges by a bigger-than-expected 50 foundation factors, and flagged extra motion in opposition to excessive inflation. However the central financial institution additionally warned of slowing financial progress, because the nation recovers from the impression of cyclone Gabrielle earlier this 12 months.

However most different currencies trended decrease, with buying and selling volumes in Asia additionally muted on account of a Chinese language market vacation.

The fell 0.2% as knowledge confirmed that eased greater than anticipated in March, whereas the pared some losses after rebounded excess of anticipated in February.

The was flat, however was sitting on positive aspects over the previous two days amid elevated protected haven demand. Knowledge additionally confirmed that Japan’s grew at a higher-than-expected tempo in March, largely offsetting a decline in .

The fell 0.1% forward of a on Thursday, the place the RBI is extensively anticipated to lift charges by 25 foundation factors.

The fell 0.1%, extending losses from Tuesday after the held rates of interest regular. However the foreign money pared some losses after RBA Governor Philip Lowe warned that , particularly as inflation stays cussed.

The U.S. greenback hovered round a two-month low, with the and transferring little in Asian commerce. The buck tumbled in in a single day commerce after U.S. fell greater than anticipated in February, pointing in the direction of some extra cooling within the jobs market.

The info largely overrode a warning from Federal Reserve Financial institution of Cleveland President Loretta Mester that rates of interest will doubtless rise regardless of financial weak point, provided that inflation continues to be comparatively excessive.

However with a cooling jobs market and steadily worsening financial circumstances, markets doubted simply how way more headroom the Fed has to maintain elevating rates of interest. This notion weighed on the greenback, whereas U.S. Treasury yields additionally fell sharply over the previous three days.

Whereas the prospect of a much less hawkish Fed bodes properly for Asian currencies, regional markets noticed little assist as fears of an financial slowdown stored markets cautious of risk-driven belongings. Secure havens reminiscent of noticed elevated demand, with the yellow metallic now inside placing distance of a brand new document excessive.