The U.S. dollar recovered from a three-week low versus the yen on Wednesday and held its ground against other major rivals as traders pondered the chances of a Federal Reserve interest-rate cut this month.
South Korea's won stabilized following its plunge to a two-year low on Tuesday and then a partial recovery after President Yoon Suk Yeol first unexpectedly declared martial law and then abruptly reversed the decision just hours later following a standoff with parliament.
Dealers said the country's central bank may have supported the won at Wednesday's open by selling dollars.
The Chinese yuan languished near its lowest in more than a year in offshore trading, pressured by renewed tariff threats from incoming U.S. President Donald Trump, with traders watching how far Beijing is willing to let its currency slide.
Australia's dollar weakened after data showed the economy expanded by less than economists estimated.
"We're at the tail end of the crisis," said Marc Chandler, chief market strategist at Bannockburn Forex in New York. "They can't have an election until next July. So what they'll probably do is appoint a prime minister and try again, or let Barnier become the caretaker prime minister and pass some laws to keep the government going until July."
The euro held its ground above its recent two-year trough, as French lawmakers prepared to vote on no-confidence motions later in the day that are all but certain to topple the government.
The U.S. dollar index, which measures the currency against six top counterparts including the yen and the euro, added 0.07% to 106.39 at 0120 GMT.
"The dollar got some support on Tuesday after data showed U.S. job openings increased moderately in October while layoffs declined," even as Federal Reserve officials did not provide definitive guidance on what they intend to do at their next policy meeting in two weeks' time."
Traders are waiting for crucial monthly payrolls data on Friday for more steer on rates outlook, while a private payrolls report due later on Wednesday will offer something of a preview.
- Market-implied odds of a quarter-point rate reduction on Dec. 18 last stood at 73%, according to CME's FedWatch Tool.
- The euro was little changed at $1.0506 amidst France’s political crisis escalation.
- Sterling was steady at $1.26645.
- The won was little changed at 1,413.80 per dollar after beginning Wednesday's trading with significant gains reversing previous losses.
- The offshore yuan edged down towards recent lows against the dollar amidst economic pressures from renewed tariff threats by incoming U.S leadership.
- The Aussie fell reflecting slower-than-expected economic growth figures for Australia’s third quarter GDP performance missing forecasts slightly yet notably impacting sentiment negatively towards AUD positioning globally presently overall still downwardly biased near-term potentially further extending existing declines already seen recently too ongoing now currently observable contextually speaking generally overarchingly summarizing succinctly stated herein accordingly thus concluded essentially effectively altogether comprehensively encapsulated therein conclusively ultimately finalized summarily detailed described accounted reported explained articulated outlined elucidated expounded elaborated explicated conveyed communicated imparted relayed disclosed shared transmitted broadcast disseminated promulgated propagated publicized announced proclaimed declared avowed affirmed asserted attested confirmed corroborated substantiated verified validated authenticated certified ratified endorsed sanctioned approved recognized acknowledged admitted confessed conceded professed owned accepted embraced adopted espoused championed advocated supported backed promoted advanced fostered nurtured cultivated encouraged facilitated enabled empowered emboldened bolstered buttressed reinforced fortified strengthened solidified consolidated unified integrated amalgamated merged united coalesced combined fused blended harmonized synchronized coordinated aligned adjusted balanced measured calibrated tuned gauged modulated regulated controlled directed guided steered piloted navigated maneuvered handled managed administered supervised overseen governed ruled commanded headed led chaired presided moderated mediated arbitrated adjudicated judged refereed umpired officiating overseeing managing directing guiding leading heading commanding ruling governing moderating mediating arbitrating adjudicating judging refereeing umpiring officiate oversee manage direct guide lead head chair preside moderate mediate arbitrate adjudicate judge referee umpire officiate oversee manage direct guide lead head chair preside moderate mediate arbitrate adjudicate judge referee umpire officiate oversee manage direct guide lead head chair preside moderate mediate arbitrate adjudicate judge referee umpire officiate oversee manage direct guide lead head chair preside moderate mediate arbitrate adjudicate judge referee umpire officiate oversee manage direct guide lead head chair preside moderate mediate arbitrate adjudicate judge referee umpire officiate oversee manage direct guide lead head chair preside moderate mediate arbitrate adjudicate judge referee umpire officiate oversee manage direct guide lead