The dollar was trading at 11-week highs on Thursday ahead of a Federal Reserve conference next week. As most Asian currencies edged lower amid growing worries about rising interest rates and weakening global growth. Following interest rate cuts on yuan deposits by several large Chinese state banks. Which could signal a wider interest rates cut by the People’s Bank this month. The Chinese yuan dropped 0.1% and touched a new 6-month very low against the dollar.

1. Asian currencies falls, China’s yuan falls to a
six-month low as some banks lower interest rates
by 15bps
The dollar was trading at 11-week highs on Thursday ahead of a Federal
Reserve conference next week. As most Asian currencies edged lower amid
growing worries about rising interest rates and weakening global growth.
Following interest rate cuts on yuan deposits by several large Chinese state
banks. Which could signal a wider interest rates cut by the People’s Bank this
month. The Chinese yuan dropped 0.1% and touched a new 6-month very low
against the dollar.
As the nation continues to recover from 3 years of COVID interruptions, trading
data released this weeks suggested that the economy will continue to face
challenges. China’s exports suddenly decreased in May. And its trade surplus
decreased to its lowest level in 13 months as a result of weakening international
consumption for Chinese products.
The Friday inflation figures from China. Which is expected to provide greater
insight into the country’s disinflationary trend, are currently the main focus.

2. Wider Asian currencies fluctuated in a flat to low range as markets remained
generally wary of risky assets due to concerns about slowing GDP growth &
rising U.S. interest rates.
Asian Bank’s Interest Rate Forecast
The government announced yearly economic growth below 1.6%. Which is
significantly lower than the 3.1% projected through 2022, and this caused the
South Korean won to increase by 0.2%.
The Indian rupee stayed unchanged ahead of a conference of the Reserve Bank
later in the day. When it is believe that they will maintain current interest rates in
light of the nation’s declining inflation.
On Thursday, the Japanese yen increased 0.2 percent, benefiting somewhat
from an improvement in the country’s 1st-quarter gross domestic products data.
The reading increased hope for some economic resilience in Japan as it
struggles with high prices and declining export demand worldwide.
SHREE METAL PRICES