Forex Live Asia-Pacific FX news wrap: Bank of Korea leaves benchmark rate at 3.5%

Forex Live Asia-Pacific FX news wrap: Bank of Korea leaves benchmark rate at 3.5%

Forex news for Asian trading on Thursday, 24 August 2023

Asia’s forex trading session today remained subdued as traders anticipated Federal Reserve Chair Powell’s upcoming speech on Friday at 10:05 am US Eastern time.

Significant news and data flow related to major FX rates was notably lacking.

USD/JPY experienced a minor fluctuation, dipping during the Tokyo morning towards 114.60 before rebounding above 145.00. As of my current posting, it remains in proximity to this higher level. The market lacked fresh developments in news or data to propel these movements.

In terms of central bank actions, the Bank of Korea made a policy decision. Refer to the bullet points above for details, but in brief, the base rate benchmark remained steady at 3.5%, maintaining its status throughout the year.

The People’s Bank of China once again established a supportive reference rate for USD/CNY, favoring the yuan. This week has witnessed consistent gaps of around 10 big figures between the projected estimate and the PBOC’s set rate. This pattern continued today, with the difference remaining just under 10 big figures.

Asian equity markets:

Japan’s Nikkei 225 +0.4%

China’s Shanghai Composite -0.1%

Hong Kong’s Hang Seng +1%

South Korea’s KOSPI +0.9%

Australia’s S&P/ASX 200 +0.4%

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