Asian Currencies Slump Ahead of Fed Minutes Release

Asian currencies fell on Wednesday following a rise in Treasury yields and a strengthening U.S. dollar as investors await more cues from the Federal Reserve’s February meeting minutes.[0] The Chinese yuan was particularly hard hit, losing 0.3% on the day, due to growing uncertainty surrounding the Chinese economic recovery.

It is widely anticipated that the Federal Reserve’s minutes, to be released later in the day, will again emphasize its hawkish outlook.[0] This comes after a stronger-than-expected inflation reading for January, which has added more weight to the Fed’s rhetoric.[1]

The U.S. Personal Consumption Expenditures price index is also due this week, and is expected to show that inflationary pressures remained elevated in January.[0] This data is the Fed’s preferred inflation gauge, and is expected to reiterate that inflation remained sticky in January.[0]

0. “Asia FX dented by rising yields, dollar gains as Fed minutes loom” Yahoo Finance, 22 Feb. 2023,

1. “Asian stocks hit by tech rout, more Fed cues awaited” Yahoo Life, 22 Feb. 2023,