Market Snapshot: Asian currencies generally stabilize, with the rupee leading the gains
On Tuesday in the Asian session, most Asian currencies strengthened slightly, with the Indian rupee rebounding noticeably from its recent historic low, becoming one of the strongest performers of the day.
Key Catalyst: US-India Trade Agreement Brings "Tariff Gap"
The core news driving the rupee's strength is the announcement of a trade arrangement between the US and India: the US will reduce tariffs on Indian goods from 50% to 18%, and India has mentioned further market opening and reducing Russian oil purchases.
Against this backdrop, the USD/INR pair fell by about 1.5% intraday, returning to levels near mid-January lows.
Australian Dollar: Rate Hike "Almost Certain," Attention on Wording
The Australian dollar remained strong ahead of policy events, with AUD/USD maintaining near a three-year high. The market widely expects the Reserve Bank of Australia to raise rates by 25 basis points to counter inflationary pressures by the end of 2025; the more critical debate is whether the central bank will indicate a new round of tightening cycles.
Dollar and Yen: Dollar Still Strong, Yen Steady but "Intervention Question" Lingers
Although the dollar index fell slightly in the Asian morning session, it remains in the recent high zone. A reevaluation of the Federal Reserve's policy path was triggered by Kevin Warsh's nomination, providing short-term support for the dollar.
Regarding the yen, the uncertainty about "whether to intervene" caused previous volatile fluctuations, but the intraday trend stabilized, bringing USD/JPY back above 155.
Other Currencies: Won and Yuan Strengthen Slightly, Divergence Persists
Other currencies in the region remained relatively strong: USD/KRW fell, and USD/CNY edged down slightly; meanwhile, the yuan has recently been influenced by a strong midpoint rate, resulting in some divergence in its movement compared to other Asian currencies.
