Asian emerg­ing mar­ket cur­ren­cies re­bound against US dol­lar

The China Post - - BUSINESS INDEX & -

Asian cur­ren­cies from the South Korean won to Malaysian ring­git strength­ened against the U.S. dol­lar Wed­nes­day with con­fi­dence re­turn­ing to trad­ing floors as re­gional eq­uity mar­kets re­cov­ered af­ter a global rout.

But the green­back losses were likely to be short-lived as the U.S. Fed­eral Re­serve read­ies to lift near-zero in­ter­est rates for the first time in al­most a decade, ana- lysts said.

“It’s hard to see how any Asian cur­rency will post sus­tained, sub­stan­tial gains in the fourth quar­ter, with losses ver­sus the U.S. dol­lar likely to be the norm,” Sean Cal­low, a se­nior cur­rency strate­gist at West­pac Bank­ing in Syd­ney, told Bloomberg News.

“We ex­pect volatil­ity to re­main el­e­vated as Asian pol­i­cy­mak­ers strug­gle with re­gional de­cel­er­a­tion in growth, and yet more weeks and months of de­bate over the Fed pol­icy out­look.”

The won rose al­most 1.5 per­cent against the U.S. dol­lar and the ring­git was 0.48 per­cent higher.

The U. S. dol­lar rose against the yen and euro. The green­back strength­ened to 119.99 yen from 119.75 yen Tues­day in New York, while the euro was at US$ 1.1225 from US$ 1.1242 in U. S. trade.

The sin­gle cur­rency also eased to 134.70 yen from 134.77 yen.

The In­done­sian ru­piah gained 0.17 per­cent, the Sin­ga­pore dol­lar rose 0.16 per­cent, and the Thai baht was up 0.22 per­cent. The Aus­tralian dol­lar rose 0.12 per­cent.

Deal­ers will be keep­ing an eye on a speech by Fed boss Janet Yellen later in the day for a cue on the bank’s plan for mon­e­tary pol­icy, her first since in­di­cat­ing last week that a hike in in­ter­est rates re­mains on the ta­ble for 2015.

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