Asian currencies consolidate as October Fed hike bets fall to 49%

  • Asian currencies consolidated against the dollar in early Asian trading.
  • 49% was the market pricing for an October 25-basis-point Federal Reserve increase, down from 71%.
  • Williams saw one further hike as appropriate late this year, without urgency after the increase.

Asian currencies held broadly steady against the dollar in early trade as markets reduced expectations for another Federal Reserve rate increase. New York Fed President Williams said one further hike may be appropriate late this year but indicated no urgency after the increase earlier this month. Market pricing for a 25-basis-point move at the next FOMC (Federal Reserve rate-setting committee) meeting in October fell to 49% from 71% previously, CBA's Joseph Capurso said. The dollar was little changed at 1,352.15 won, while the Australian dollar held at US$0.6985, according to LSEG data.

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