MUFG: Asian currencies consolidate amid U.S. debt ceiling talks

May 10: Asian currencies consolidated against the U.S. dollar in early trading amid U.S. debt-ceiling talks. These debt-ceiling talks have made currency market moves more cautious, Jeff Ng, senior currency analyst at MUFG, said in a research note. He noted that U.S. President Joe Biden and Republicans made little substantive progress at Tuesday’s meeting. He also added that the focus of the market is also on tonight’s U.S. CPI data, if the data shows more sticky and persistent, it may strengthen people’s expectations that the Fed will delay the turn to dovish. Currently, the U.S. dollar fell about 0.2% against the Korean won; the Australian dollar rose about 0.1% against the U.S. dollar.