© Reuters.
by Zhang Mengying
Investing.com – The dollar weakened Tuesday morning in Asian markets. As investors watched the stance of major central banks to curb inflation.
That tracked the dollar against other currencies fell 0.34% to 104.35 by 12:52 AM ET (4:52 AM GMT).
It rose 0.02% to 135.10, near a 24-year low against the dollar.
Shunichi Suzuki, Minister of Finance of Japan said on Tuesday he was concerned about the recent weakening of the yen. and appropriate measures will be taken to respond to the movements of the exchange market if necessary.
It rose 0.32% to 0.6970 and held steady at 0.6334. Reserve Bank of Australia (RBA) Governor Philip Low reiterated on Tuesday that further rate hikes were likely.
“We are in a plan to keep inflation at 2% to 3%, Australians should be prepared for a rate hike,” Low warned.
“Interest rate levels are still very low for an economy with low unemployment that is experiencing high inflation.”
It dropped 0.06% to 6.6885 while it rose 0.13% to 1.2267. There were reports of COVID-19 cases. It happened again in various Chinese cities, including Shenzhen. This has raised concerns about the country’s second-largest country’s uncertain recovery path.
Major central banks have taken steps to curb inflation and raise interest rates. This makes investors worried about a slowdown in economic growth.
James Bullard, President of the St. Louis Fed warned that U.S. inflation expectations could be “worse without credible Fed action,” while former Treasury Secretary Lawrence Summers suggested to deal with price pressures. The US unemployment rate must rise above 5% for a sustainable period.
On the European side, European Central Bank President Christine Lagarde said officials intend to raise interest rates in July and September. Despite growing concerns about financial market tensions
Federal Reserve Chairman Jerome Powell will address the Senate and House on Wednesday and Thursday.
