Investing.com– Most Asian currencies fell on Wednesday as the dollar rebounded from 15-month lows, with recent U.S. data spurring more bets that the Federal Reserve was close to pausing its rate hike.
The and rose about 0.1% each in Asian trade, extending an overnight rebound after data showed the U.S. rose less than expected in June.
The reading indicated that US inflation was likely to decline further in the coming months, but cemented bets that the Fed would raise rates one last time at the end of July before announcing a pause. The central bank is widely expected until next week.
However, overnight strength in the dollar pressured most Asian currencies, with the losing 0.3%, while the sank 0.4%.
Concerns about slowing economic growth in China also kept sentiment toward Asia largely negative.
Chinese yuan extends losses after weak GDP
The was among the worst performing Asian currencies on Wednesday, down 0.4% and once again crossed the 7.2 mark against the dollar.
The currency posted steep losses this week after data showed a sharp slowdown in the second quarter, damaging sentiment over Asia’s biggest economy.
While the weak economic readings have raised expectations for more stimulus measures from Beijing, any increases in local liquidity conditions are likely to be negative for the yuan.
Concerns about China have also spilled over into other Asian currencies with exposure to the country. The fell 0.1%, while the and lost 0.4% each.
New Zealand dollars gain as sticky inflation spurs rate-hike bets
The was among the few gainers for the day, rising 0.2% after data showed the country remained sticky during the second quarter. The coin was trading near a more than five-month high.
While the signaled an end to its nearly two-year rate hike earlier in July, the overheated inflation data spurred bets that the central bank may be forced to raise interest rates.
But the New Zealand economy is expected to worsen this year, after entering a technical recession in the first quarter.