Broader Asian currencies moved little on Friday, and were nursing losses in October

Most Asian currencies tread water on Friday, with the yuan showing little reaction to dismal business activity data.

The yen firmed slightly, reversing a measure of recent losses after Tokyo inflation data read hotter than expected for October. Hawkish comments from Bank of Japan Governor Kazuo Ueda also lent some support.

The yuan’s USD/CNY pair moved little on Friday, and traded just above its lowest level in a year. This was also following a slightly weaker midpoint fix from the People’s Bank.

Purchasing managers index (PMI) data showed China’s manufacturing sector dipped more than expected and for a seventh straight month in October, indicating that sentiment among businesses remained largely negative.

China’s composite PMI also came on the verge of turning negative in October, as businesses grappled with sluggish private spending.

The print underscored the need for more stimulus measures from Beijing. While top officials had pledged in recent weeks to unlock more support, details on China’s planned measures remained unclear.

Still, the yuan remained near its strongest level in a year, following months of strong fixings by the PBOC.

The USDCNY pair was trading down 0.1% in October.

The yen’s USD/JPY pair declined 0.2% on Friday, dropping from its highest level since early-February.

Broader Asian currencies moved little on Friday, and were nursing losses in October.

The Australian dollar’s AUD/USD pair shed 0.1%, reversing course after hot CPI data dampened bets on more rate cuts by the RBA. The currency dropped around 1% in October.

The won’s USD/KRW pair slipped 0.1%, but saw some strength this week.

The USDKRW pair was trading up 1.7% in October.

The Singapore dollar’s USD/SGD pair dropped slightly and was trading 0.8% higher in October.