-- Most Asian currencies inched lower on Thursday amid increased concerns over rising interest rates and slowing growth across the globe, while the dollar hovered near 11-week highs ahead of a Federal Reserve meeting next week.

The fell 0.1%, hitting a fresh six-month low against the dollar after several major Chinese state banks began cutting interest rates on yuan deposits, which could herald a broader interest rate cut by the People’s Bank this month.

Trade data released this week pointed to more economic headwinds for the country, as it struggles to recover from three years of COVID disruptions. China’s unexpectedly shrank in May, while its hit a 13-month low amid softening global demand for Chinese goods.

Focus is now on Chinese on Friday, which is expected to shed more light on a disinflationary trend in the country.

Broader Asian currencies moved in a flat-to-low range, as fears of slowing economic growth and rising U.S. interest rates kept markets largely wary of risk-driven assets.

The rose 0.2% as the government flagged annual economic growth of below 1.6%, much lower than the 3.1% seen through 2022.

The was flat ahead of a later in the day, where the Reserve Bank is widely expected to hold interest rates steady, amid easing inflation in the country.

The rose 0.2% on Thursday, taking some support from an upward revision to the country’s . The reading pushed up optimism over some resilience in the Japanese economy, as it grapples with high inflation and softening global demand for exports.

The rose 0.3% as expectations of more rate hikes by the Reserve Bank largely outweighed weak economic signals. Data on Thursday showed that the country's and shrank through April.

The reading comes after data showed that the Australian economy in the first quarter of 2023.

Dollar rangebound ahead of Fed, CPI data

The dollar moved little in Asian trade on Thursday, with the and steadying just below 11-week highs.

The greenback has fallen into a tight trading range amid uncertainty over a , with markets split over whether the central bank will carry out another rate hike.

U.S. is also due next week, offering more cues on the economy and potentially factoring into the Fed’s future interest rate decisions.