The U.S. dollar remained on the back foot against major peers on Wednesday after a two-day drop as U.S. Federal Reserve officials including Chair Jerome Powell reaffirmed that tighter monetary policy was still some way off.
The dollar index , which measures the greenback versus six rivals, was at 91.775 in early Asian trading, off a two-month high of 92.408 reached at the end of last week.
It has now given up about a third of its sharp gains posted since last Wednesday, when the Fed surprised markets by signalling much earlier rate hikes than investors previously expected.
The euro was little changed on Wednesday at $1.19340, after rebounding from as low as $1.18470 at the end of last week.
The yen , which tends to move inversely to U.S. Treasury yields, was mostly unchanged at 110.740 per dollar, close to the 110.825 mark reached last week for the first time since April 1.
Benchmark 10-year Treasury yields edged lower in Asia to 1.4616%, from as high as 1.5940% a week ago.
· EMERGING MARKETS-Asian currencies gain as Fed reassures on rates; Thai cbank in focus
Thailand’s baht came off a nine-month low on Wednesday and the Philippine peso snapped a six-day losing run, after U.S. Federal Reserve Chairman Jerome Powell said the central bank would not raise interest rates too quickly.
The baht firmed 0.4% and Thai stocks inched higher, as investors also awaited a Bank of Thailand meeting where the central bank is expected to leave interest rates at a record low and cut its growth forecast.
The tourism-reliant nation has seen revenues plummet over the last year due to the pandemic, prompting Prime Minister Prayuth Chan-ocha to announce a plan last week to gradually reopen Thailand to visitors within 120 days to revive the economy.
· N.Korea's currency, commodity markets in turmoil as borders stay closed - reports
Currency exchange rates and commodity prices appear to be wildly fluctuating in North Korea as a resumption in major trade with China hasn't materialised, media reports and analysts say, increasing the hardship for residents facing food shortages.
After steadily rebounding in the first few months of the year, China's exports to North Korea in May fell to $2.71 million from $28.75 million in April, quashing hopes among traders along the border that more than a year of anti-coronavirus closures could soon ease.
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