{
  "id": 12541817,
  "title": "Asian currencies mixed as dollar holds gains, yen weakens near 158",
  "url": "https://urgent.news/2026/10/07/asian-currencies-mixed-as-dollar-holds-gains-yen-weakens-near-158",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-07T03:51:14.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/forex-news/asian-currencies-mixed-as-dollar-holds-gains-yen-weakens-near-158-4935567"
  },
  "original_language": "en",
  "account": "Asian currencies experienced mixed trends on Wednesday as the U.S. dollar maintained gains near recent peaks, while the Japanese yen slipped toward 158 per dollar amid market assessments of the Bank of Japan's policy outlook and emerging fiscal uncertainties. Rising oil prices and increasing Treasury yields exerted additional downward pressure on the currency complex, with investors eagerly anticipating the Federal Reserve's September meeting minutes and remarks from several Fed officials for insights into the next rate adjustment. The U.S. dollar index stood at 102.03, up 0.2%, whereas the USD/JPY pair edged up 0.2% to 158.38. Conversely, the EUR/USD pair declined 0.2% to 1.124, and the GBP/USD pair slipped 0.2% to 1.325. The Australian dollar hovered around $0.6973, and the New Zealand dollar was at $0.5610. Oil prices surged nearly 1%, reaching approximately $101.50 per barrel following heightened attacks on tankers in the Strait of Hormuz by Iran, which contributed to a rise in Treasury yields to around 5.31%. The 10-year U.S. Treasury yield climbed three basis points. Recent weakness in the dollar followed softer U.S. PCE inflation and employment data, dampening expectations for an October rate hike. However, market expectations persist of further tightening later in the year and in 2027, with the probability of a Fed rate increase by at least 25 basis points in October falling to 20.5% from about 51% a week prior, according to CME FedWatch. The chance of a December increase remains at 84.5%. The Fed is set to release minutes from its September 15-16 meeting later on Wednesday, when it raised rates to curb inflation. Fed officials Christopher Waller, Neel Kashkari, and Alberto Musalem are slated to provide testimony. Kansas City Fed President Jeff Schmid indicated on Tuesday that the central bank must raise rates further to mitigate inflation. The USD/JPY pair remained near the mid-158s after the newly appointed BOJ board member, Ayano Sato, expressed support for successive interest rate hikes. The BOJ may signal in the current month that underlying inflation has largely reached its 2% objective, as per reports citing sources familiar with its deliberations, underscoring its inclination to raise rates again. DBS FX & Credit Strategist Chang Wei Liang suggested the yen might remain marginally weaker as the Japanese government deliberates on a second supplementary budget, anticipating potential market reaction due to prior indications that a supplementary package would not be pursued, with reserve funds redirected towards disaster relief and other emergencies. The USD/INR pair rose 0.2% to 96.61, with the rupee vulnerable to oil prices exceeding $100 and stronger U.S. yields. The Reserve Bank of India is expected to lift rates by 25 basis points to 5.50%, the first increase since February 2023, with Governor Sanjay Malhotra's comments receiving close scrutiny for hints on future policy direction. DBS Senior Economist Radhika Rao noted that the macro backdrop has significantly evolved since the August meeting, driven by oil prices surpassing $100 and the Fed commencing its tightening cycle. Rao emphasized the critical question of whether this move is merely a recalibration following last year's rate cuts or the inception of a prolonged tightening cycle, expecting additional hikes in the fourth quarter, contingent on sustained elevated oil prices and adverse weather conditions. The USD/CNH pair edged up 0.05% to 6.7043, while USD/CNY remained unchanged at 6.7046. The USD/KRW pair slipped 0.01% to 1,337.85, and the USD/SGD index rose 0.12% to 1.2788. Elsewhere, the euro faced fresh pressure from fiscal concerns in Europe, as French bond futures underperformed German counterparts amid assessments of France's deficit outlook, compounded by Spain's snap-election uncertainties, which added to broader pressure on the euro area.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 5,
    "also_reported_by": [
      {
        "outlet": "The Economic Times - Top News",
        "title": "Global Market Today: Asian stocks hold near record highs, oil climbs",
        "url": "https://urgent.news/2026/10/07/global-market-today-asian-stocks-hold-near-record-highs-oil-climbs",
        "published": "2026-10-07T00:53:43.000Z"
      },
      {
        "outlet": "The Business Times - Companies & Markets",
        "title": "South Korea’s Kospi drags Asian stocks lower after Wall Street rally, oil gains",
        "url": "https://urgent.news/2026/10/07/south-koreas-kospi-drags-asian-stocks-lower-after-wall-street-rally",
        "published": "2026-10-07T01:42:30.000Z"
      },
      {
        "outlet": "The Mainichi",
        "title": "Tokyo stocks open up after Wall St. advances but capped as gains locked in",
        "url": "https://urgent.news/2026/10/07/tokyo-stocks-open-up-after-wall-st-advances-but-capped-as-gains",
        "published": "2026-10-07T01:54:51.000Z"
      },
      {
        "outlet": "Winnipeg Free Press",
        "title": "Asian stocks mostly fall back despite latest earnings-driven rally on Wall Street",
        "url": "https://urgent.news/2026/10/07/asian-stocks-mostly-fall-back-despite-latest-earnings-driven-rally-on",
        "published": "2026-10-07T04:05:06.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}