Oil drags on Asian cur­ren­cies

The Myanmar Times - - International Business -

ASIAN cur­ren­cies slumped yes­ter­day as an overnight sell-off in oil hit sen­ti­ment, while the Aus­tralian dol­lar dropped after the cen­tral bank slashed in­ter­est rates to a record low 1.5 per­cent.

Lin­ger­ing wor­ries about a sup­ply glut drove crude to be­low US$40 a bar­rel in New York, a three-month low, drag­ging down oil-linked cur­ren­cies like the Malaysian ring­git.

The Aussie dropped after the cen­tral bank cut its cash rate, a widely ex­pected move to help the econ­omy as it tran­si­tions away from a decade-long min­ing boom.

In Ja­pan, the yen dipped against the dol­lar as in­vestors waited for the gov­ern­ment to spell out de­tails of its 28-tril­lion yen (US$273 bil­lion) plan to boost slug­gish growth.

The ring­git weak­ened 0.5pc against the dol­lar, while other emerg­ing mar­ket units, in­clud­ing the South Korean won, In­done­sia’s ru­piah and the Philip­pine peso, were also down against the green­back.

The Aussie fell as low as 74.91 US cents, from around 75.40 cents just be­fore the rate de­ci­sion.

In Tokyo, the dol­lar bought 102.33 yen, down from 102.41 on Au­gust 1 in New York. The euro was at $1.1179 and 114.40 yen, against $1.1160 and 114.29 yen.

Ja­pan’s fi­nance min­is­ter pointed to “ex­tremely ner­vous move­ments” in forex rates dur­ing a reg­u­lar press brief­ing yes­ter­day, as of­fi­cials fret over a sharp ap­pre­ci­a­tion in the yen. –

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