"If I combine this earlier (U.S.) Fed rhetoric trying to keep the rates higher for longer and the recent CPI number...then it seems likely that there should be some degree of moderation in the equity markets, both developed markets and Asian markets," said Manishi Raychaudhuri, head of Asia Pacific equity research at BNP Paribas. He said the dollar might also regain some strength over emerging market currencies, helped by the prospect of U.S. rates staying elevated.
The dollar touched a six-week high of 133.30 Japanese yen overnight and hovered at 133.05 yen on Wednesday. It had a bumpier ride against other currencies following the CPI data, but seems to be pausing following a January slide. The dollar index against other major currencies was steady at 103.4. The Australian dollar eased a bit to $0.6938 even as central bank Governor Philip Lowe said rates would need to rise further to contain inflation in remarks to a parliamentary committee. China's central bank ramped up medium-term liquidity injections as it rolled over maturing policy loans on Wednesday, while keeping the interest rate unchanged, matching market expectations. But the mainland's stock markets slid broadly by early afternoon as investors wait for more signs of whether an expected economic recovery is gaining traction. Oil prices fell as traders worried about mounting supplies and weakening demand. U.S. crude dipped 0.86% to $78.38 a barrel. Brent crude fell to $84.87.
Gold gave up some early gains by afternoon. Spot gold traded at $1847.5085 per ounce. Bitcoin clung to an overnight bounce at $22,114. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates YTD Global asset performance Asian stock markets ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Editing by Jacqueline Wong and Kim Coghill)
