Asian currencies traded steady on Friday but remained on course for notable weekly declines, as resilient U.S. data dampened expectations of swift Fed rate cuts and kept the dollar supported.
The U.S. dollar index eased 0.2% after hitting a three-week high overnight, buoyed by a revised 3.8% Q2 GDP growth figure and cautious remarks from Fed Chair Jerome Powell. Traders now await the Fed’s preferred inflation gauge, the PCE index, due later Friday.
Japan’s latest Tokyo CPI data showed headline inflation steady at 2.5%, while core inflation slowed to 2.5% from 3.0%, reinforcing expectations that the Bank of Japan will move only gradually toward further tightening. The yen edged lower but is still set for a 1% weekly gain.
Elsewhere in Asia, the Korean won advanced about 1% this week, while the Australian dollar fell 0.7%. The Indian rupee hovered near record lows, and the Chinese yuan was little changed.
Sentiment was further pressured after U.S. President Donald Trump announced fresh tariffs on pharmaceuticals, trucks, and furniture, raising concerns over Asian exporters and emerging market currencies.
