Investing.com– Most Asian currencies kept to a tight range on Friday, while the dollar nursed some weekly losses amid uncertainty over interest rates, while anticipation of President-elect Donald Trump’s inauguration also weighed.
The Chinese yuan firmed slightly after gross domestic product data for the fourth quarter read better than expected. China’s economy grew in line with Beijing’s 5% forecast for the year.
Regional currencies saw some relief this week, as the dollar slid from over two-year highs after soft inflation data. But other data still showed resilience in the U.S. economy, spurring uncertainty over the rate outlook.
Chinese yuan firms slightly on strong Q4 GDP
The Chinese yuan firmed slightly, with the USD/CNY pair falling 0.1% after hitting an over one-year high this week.
China’s GDP grew 5.4% in the fourth quarter, more than expectations of 5%, as a barrage of recent stimulus measures bore fruit.
Annual GDP read 5%, in line with Beijing’s target. Other data also showed China’s industrial production grew more than expected in December, as did retail sales, amid some signs of improving consumer spending.
Friday’s data dump showed some resilience in the Chinese economy, as it faces increased trade tariffs under Trump. But Beijing is also expected to dole out more stimulus measures this year.
China-exposed currencies saw limited moves despite hopes that China’s economy was picking up. The Australian dollar’s AUD/USD pair firmed slightly, as did the South Korean won’s USDKRW and the Singapore dollar’s USD/SGD.
Elsewhere, the Indian rupee’s USD/INR pair steadied just below record highs of over 86.6 rupees hit this week.
