Asian stocks sold off and the dollar scaled an 11-week peak against major peers on Friday, as investors braced for the risk of a hawkish tilt from Federal Reserve Chair Jerome Powell at Jackson Hole.
U.S. yields stabilised below 14-year highs. Crude oil found its footing around one-month lows, but remained on course for a second weekly decline amid a firmer dollar and simmering China-centered worries about global growth.
Meanwhile, the People’s Bank of China set a much stronger-than-anticipated official mid-point for the yuan – something it has done every day this week – to keep a floor under its currency amid the strains from a robust dollar and a sputtering economy.
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