Asia FX treads water, dollar flat amid US inflation angst
==========
Most Asian currencies moved little on Wednesday as anticipation of key U.S. inflation data dissuaded any big bets. The Japanese government's potential intervention in currency markets kept traders on their toes, as the yen remained close to its weakest level in 34 years. The dollar index futures hovered around the 104 level as focus remained on upcoming inflation data for March. The reading is expected to show that inflation remained sticky in March, which gives the Federal Reserve less impetus to begin cutting interest rates. The minutes of the Fed's March meeting are also due on Wednesday. Markets were on edge over any potential currency market intervention by the Japanese government, especially as the USD/JPY pair remained close to the 152 level, its highest level since 1990. The Chinese yuan's pair moved little following a strong midpoint fix by the People's Bank of China. However, sentiment towards Chinese markets soured after Fitch Ratings downgraded its outlook on China's credit rating. Broader Asian currencies moved in a flat-to-low range as focus remained on more cues from the U.S.
#AsiaFx #UsInflation #CurrencyMarkets #Dollar #Yen #FederalReserve #JapaneseGovernment #ChineseYuan