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Asia FX benefits on weak dollar ahead of Trump inauguration, BoJ rate decision looms By Investing.com



Investing.com– Most Asian currencies edged higher on Monday as the dollar weakened ahead of US President-elect Donald Trump, while China's central bank kept lending rates on hold unchanged to support the yuan.

Regional currencies saw modest gains as markets were cautious ahead of Trump's inauguration in anticipation of additional trade tariffs on Chinese exports. This could trigger a trade war and affect most Asian economies because of their trade-dependent economy.

That was 0.3% lower in Asian trade, retreating from a 26-month high reached last week. The greenback has consistently remained near a two-year high after the Federal Reserve turned hawkish last month.

also down 0.3%.

Chinese yuan was mostly quiet even as PBOC keeps key lending rates

The onshore Chinese yuan pair rose 0.1%, while the offshore pair gained 0.2%.

The Chinese yuan traded in a narrow range on Monday, showing little reaction to the People's Bank of China's decision to keep its key lending rates steady.

The PBOC kept its one-year rate unchanged at 3.1% and kept the , used to set mortgage rates, at 3.60%.

The move, which was aimed at supporting a weakening yuan, maintaining liquidity, and supporting economic recovery, did little to affect market sentiment for the currency. – border.

Japan, Malaysia interest rate decision expected

The Japanese yen pair fell 0.3% as markets priced in a rise in interest rate futures later this week.

The BOJ is expected to raise interest rates next week, provided there is no market turmoil after Trump's inauguration. The central bank is likely to reiterate its commitment to further rate hikes if the economy continues to shrink, Reuters said on Friday citing sources familiar with the matter.

The Malaysian ringgit pair entered 0.1% lower ahead of the . The BNM is expected to hold rates steady at 3.00% for the 10th straight meeting on Wednesday due to strong economic growth and control of inflation, a Reuters poll showed.

Elsewhere, the Australian dollar edged 0.2% higher, while the Singapore dollar pair fell 0.3%.

The Thai baht pair was largely unchanged, while the Indian rupee pair slipped 0.1% lower.

South Korea's pair of winners fell 0.4% amid the country's ongoing political crisis.





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