Asia FX mixed, dollar slips after hot U.S. CPI; yen firms on intervention warnings

Asian currencies experienced a mixed day on Thursday, with the U.S. dollar slipping from an 18-month high following a surge in hot inflation data from the country. The dollar index declined 0.6% to 101.96 by 23:50 ET after edging up 0.4% on Wednesday due to the inflation report. U.S. consumer prices increased 3.7% year-on-year in September, surpassing the 3.4% rise in August and economists' 3.6% forecast.

Core consumer prices went up 2.6% annually, higher than the 2.5% expected, reigniting worries that the Federal Reserve might need to tighten monetary policy further. However, Fed officials like Vice Chair Michelle Bowman and San Francisco Fed President Mary Daly hinted that policymakers may wait for clearer inflation data before tightening policy.

The Japanese yen's value against the dollar fell 0.4% as Finance Minister Satsuki Katayama cautioned against excessive currency movements. The Chinese yuan's onshore and offshore USD/CNY and USD/CNH pairs remained relatively stable. South Korea's won was the biggest loser, with the USD/KRW pair surging 0.8% amid regional equity losses.

The Australian dollar's AUD/USD pair dropped 0.3% after domestic employment unexpectedly fell in September, with 39,300 fewer jobs than expected. The jobless rate held steady at 4.7%, its highest in five years, as part-time job losses contributed to a 73,700 decline. The Indian rupee edged up 0.1% against the dollar, while the Singapore dollar fell 0.2%.