Asian currencies traded mixed on Thursday as the U.S. dollar hovered near a two-month high, while the Japanese yen weakened following conflicting signals from the Bank of Japan over the pace of future interest rate hikes.
The U.S. dollar index climbed about 0.13% to 101.58 after gaining roughly 2% in September, its strongest monthly performance since June. Elevated Treasury yields continued to support the greenback, although softer-than-expected U.S. inflation reduced expectations that the Federal Reserve will raise rates in October.
The yen was among the weaker regional currencies, with USD/JPY rising 0.5% to 158.15 after touching a two-week high of 158.21. The BOJ's September meeting summary showed policymakers divided over Japan's economic strength and how quickly interest rates should increase.
Some officials favored accelerating rate hikes, while others highlighted weakness in domestic demand despite positive second-quarter growth. Markets now assign less than a 20% probability to a BOJ hike by October 30, down from above 30% on Wednesday, while a December increase is fully priced.
The Australian dollar remained near a two-month low, with AUD/USD around $0.69. Australia's August trade surplus narrowed to A$495 million from a revised A$1.35 billion in July, missing expectations of roughly A$2 billion. The data followed the Reserve Bank of Australia's 25-basis-point rate increase to 4.60%, the highest since 2011.
China's offshore yuan weakened slightly, with USD/CNH rising 0.1% to 6.72, while USD/CNY held near 6.70. Mainland Chinese markets are closed from October 1 through October 7 for the National Day holiday.
South Korea reported a strong 83.5% year-on-year surge in September exports to a record monthly high, exceeding expectations for 62% growth. However, the won remained pressured, with USD/KRW rising 0.2% to 1,359.80.
Elsewhere, USD/IDR jumped 0.67% to 17,949 as Indonesia's rupiah faced pressure from higher U.S. yields, a strong dollar and elevated oil prices. USD/SGD gained 0.16%, while NZD/USD declined 0.14%.


US Alcohol Ban Exposes Canada’s Internal Trade Barriers
U.S. Stock Futures Steady as AI, Rate Concerns Weigh
Australia Inflation Accelerates to 4% After RBA Rate Hike
UK Housebuilder Stocks Surge on New First-Time Buyer Loan Scheme
Asian Currencies Mixed as Yen Weakens, RBA Hike Looms
South Korea Exports Set for 16th Monthly Gain on AI Chip Demand
Oil Prices Steady as Middle East Crude Flows Recover
Asian Stocks Fall as Bond Yields and Oil Prices Surge
US Dollar Hits Two-Month High as Aussie, Pound Slide
South Korea Exports Surge 83.5% on AI Chip Boom
Asian Stocks Rise as Chipmakers Rally on Micron Earnings
Gold Rebounds as Oil Falls and Treasury Rout Eases
India Manufacturing Growth Hits Seven-Month High in September
Gold Plunges 4% as Treasury Yields Surge and Fed Rate Hike Bets Rise
Oil Prices Slide as Middle East Flows Recover
Gold Steady as Softer U.S. Inflation Eases Fed Rate Hike Bets 



