Asian currencies traded in tight ranges, with traders reluctant to take positions amid uncertain economic outlook

Most Asian currencies and the dollar traded sideways on Wednesday as investors assessed global uncertainty, while the Indian rupee gained slightly after the Reserve Bank of India left interest rates unchanged as expected.

Asian currencies traded in tight ranges, with traders reluctant to take positions amid uncertain economic outlook.

The Japanese yen’s USD/JPY pair traded largely flat on Wednesday, while the Singapore dollar’s USD/SGD edged up 0.1%.

The South Korean won’s USD/KRW pair added 0.3%, while the Chinese yuan’s onshore USD/CNY pair was largely unchanged.

The Australian dollar’s AUD/USD pair dropped 0.3%, reversing gains recorded in the previous session after the Reserve Bank of Australia left interest rates unchanged at 3.6% as expected.

The Reserve Bank of India (RBI) held its key repo rate steady at 5.50% on Wednesday, in line with expectations, maintaining a neutral policy stance amid mixed growth and inflation signals.

The six-member Monetary Policy Committee voted unanimously to keep rates unchanged, citing a more benign inflation outlook and moderating price pressures supported by recent tax cuts.

RBI Governor Sanjay Malhotra said the central bank would closely monitor global and domestic developments before altering policy.

The Indian rupee’s USD/INR shed 0.2% after the decision, but still hovered near record highs.

The RBI has intervened heavily in recent weeks to stem currency volatility, but global uncertainty continues to weigh on the rupee. A surprise cut could exacerbate pressure on the currency.

The US Dollar Index, which measures the dollar against a range of major currencies, traded flat in Asia hours. US Dollar Index Futures were also unchanged as of 05:00 GMT.