By Ambar Warrick
Oct 18 (Reuters) – Asian currencies were subdued on Wednesday as investors waited for any clues on the outlook for China’s foreign exchange policy from a key Communist Party Congress.
President Xi Jinping said in his opening speech to the twice-a-decade gathering early in the day that China will deepen market-oriented reforms of exchange rates and interest rates, reiterating an oft-heard government pledge. But as expected the keynote speech dealt only with broad themes and gave few details.
The Chinese yuan ticked up against the dollar, after the People’s Bank of China set its official yuan midpoint at 6.5991 to the dollar.
Overnight, the United States declined to name China as a currency manipulator although it remained critical of the Chinese government’s economic policies ahead of a planned visit to Beijing by President Donald Trump. The Singapore dollar also ticked up against the dollar, while the Malaysian ringgit was closed for a national holiday.
“The market remains guardedly optimistic in emerging market Asian currencies, but over the short term with all the dollar uncertainty brewing over the next Fed Chairperson, investors will take a very cautious tack,” Stephen Innes of FX broker OANDA said in a note
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