The Gist
News and Features
Global Philippines Fine Living
Insights
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
Webinars
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
Downloads
economy-ss-9
Economic Updates
Quarterly Economic Growth Release: 5.4% Q12025
DOWNLOAD
investment-ss-3
Economic Updates
Policy rate views: Uncertainty stalls cuts
DOWNLOAD
grocery-2-aa
Economic Updates
Inflation Update: BSP poised for a string of rate cuts as inflation cools
DOWNLOAD
View all Reports
Metrobank.com.ph Contact Us
Follow us on our platforms.

How may we help you?

TOP SEARCHES
  • Where to put my investments
  • Reports about the pandemic and economy
  • Metrobank
  • Webinars
  • Economy
TRENDING ARTICLES
  • Investing for Beginners: Following your PATH
  • On government debt thresholds: How much is too much?
  • Philippines Stock Market Outlook for 2022
  • No Relief from Deficit Spending Yet

Login

Access Exclusive Content
Login to Wealth Manager
Visit us at metrobank.com.ph Contact Us
Access Exclusive Content Login to Wealth Manager
Search
The Gist
News and Features
Global Philippines Fine Living
Insights
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
Webinars
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
Downloads
economy-ss-9
Economic Updates
Quarterly Economic Growth Release: 5.4% Q12025
May 8, 2025 DOWNLOAD
investment-ss-3
Economic Updates
Policy rate views: Uncertainty stalls cuts
May 8, 2025 DOWNLOAD
grocery-2-aa
Economic Updates
Inflation Update: BSP poised for a string of rate cuts as inflation cools
May 6, 2025 DOWNLOAD
View all Reports
Currencies 4 MIN READ

Dollar wobbles; yuan on guard ahead of China data dump

January 15, 2024By Reuters
Related Articles
Biden administration invites Taiwan to its Summit for Democracy November 24, 2021 Dollar tests supports vs yen, needs a PMI beat to avert bigger retreat July 22, 2022 PRECIOUS-Gold slips as dollar holds firm on safe-haven flows April 5, 2022

SINGAPORE, Jan 15 – The dollar ebbed on Monday on renewed expectations of a rate cut by the Federal Reserve in March, while the Chinese yuan struggled near a one-month low ahead of a slew of economic data this week.

China’s fourth-quarter gross domestic product (GDP), December industrial production, retail sales, and unemployment rate are among the economic indicators out on Wednesday, which are likely to provide further clarity on the pace of recovery in the world’s second-largest economy.

Traders also have their eye on a reading on UK inflation due later in the week, as the market focus remains on how soon major central banks globally could begin easing rates this year.

The euro hovered near the USD 1.10 mark in early Asia trade, with the single currency last at USD 1.0946.

Sterling stood near its two-week peak hit last week and last bought USD 1.2732, while the dollar index was flat at 102.50, having drifted largely sideways over the past couple of sessions.

Bets for a Fed cut in March have gathered some steam after data on Friday showed US producer prices unexpectedly fell in December, sending US Treasury yields sliding in response.

“We move past the US CPI and PPI releases and the market has become even more convinced that the Fed’s easing cycle starts in March, with a 25bp cut priced for every meeting from this starting point,” said Chris Weston, head of research at Pepperstone.

Market pricing now points to a 78% chance that the US central bank will begin easing rates in March, as compared to a 68% chance a week ago, according to the CME FedWatch tool.

In Asia, the yen remained under pressure at 145.04 per dollar on expectations that the Bank of Japan is likely to keep its ultra-loose policy settings unchanged at its upcoming policy meeting next week.

The offshore yuan languished near a one-month low of 7.1925 per dollar hit on Friday, and was last at 7.1861 per dollar.

China’s central bank is expected to ramp up liquidity injections and cut a key interest rate when it rolls over maturing medium-term policy loans on Monday, as authorities try to get the shaky economy back on more solid footing.

“I think more PBOC (People’s Bank of China) easing is coming this year,” said Carol Kong, a currency strategist at Commonwealth Bank of Australia.

“I don’t think (Monday’s move) will materially weigh on the (yuan) because a rate cut is more or less priced in.

“I’ll also watch out for the data dump from China… I expect the activity data and GDP figure to show weak momentum into the end of 2023.”

The Australian dollar, often used as a liquid proxy for the yuan, edged 0.07% higher to USD 0.6690. The New Zealand dollar slipped 0.13% to USD 0.6233.

“I think the risks are skewed to an even weaker signal from the Chinese economy and that could be a headwind for… risk currencies like the Aussie and kiwi,” said Kong.

Elsewhere, the Taiwan dollar was little changed and last at 31.13 per dollar, after the Democratic Progressive Party’s (DPP) Lai Ching-te won the presidency over the weekend, though his party lost its majority in parliament.

Analysts expect Taiwan’s stock market to take a hit this week as the specter of policy paralysis fuels selling in a market that is up 25% in little more than a year.

“On net, we do not expect large post-election market moves, given the outcomes were broadly in line with polls, no major changes in economic policy, and likely limited impact on cross-strait trade,” said analysts at Goldman Sachs, who are neutral on the Taiwan dollar.

(Reporting by Rae Wee; Editing by Jamie Freed)

 

This article originally appeared on reuters.com

Read More Articles About:
Worldwide News Philippine News Rates & Bonds Equities Economy Investment Tips Fine Living

You are leaving Metrobank Wealth Insights

Please be aware that the external site policies may differ from our website Terms And Conditions and Privacy Policy. The next site will be opened in a new browser window or tab.

Cancel Proceed
Get in Touch

For inquiries, please call our Metrobank Contact Center at (02) 88-700-700 (domestic toll-free 1-800-1888-5775) or send an e-mail to customercare@metrobank.com.ph

Metrobank is regulated by the Bangko Sentral ng Pilipinas
Website: https://www.bsp.gov.ph

Quick Links
The Gist Webinars Wealth Manager Explainers
Markets
Currencies Rates & Bonds Equities Economy
Wealth
Investment Tips Fine Living Retirement
Portfolio Picks
Bonds Stocks
Others
Contact Us Privacy Statement Terms of Use
© 2025 Metrobank. All rights reserved.

Read this content. Log in or sign up.

​If you are an investor with us, log in first to your Metrobank Wealth Manager account. ​

If you are not yet a client, we can help you by clicking the SIGN UP button. ​

Login Sign Up