Emerg­ing mar­ket cur­ren­cies boosted by up­beat mood

The China Post - - BUSINESS INDEX & -

Emerg­ing mar­ket cur­ren­cies strength­ened against the U.S. dol­lar Thurs­day, helped by an up­beat mood across Asian eq­uity mar­kets on spec­u­la­tion of in­creased mon­e­tary stim­u­lus.

But the green­back’s losses were un­likely to hold as sen­ti­ment re­mained dented on wor­ries over a slow­down in China’s econ­omy and con­cerns over a U.S. Fed­eral Re­serve plan to hike near-zero in- ter­est rates in 2015, an­a­lysts said.

The Aus­tralian dol­lar climbed 0.64 per­cent to 70.63 U.S. cents.

“When risk sen­ti­ment im­proves, the euro falls and the Aus­tralian dol­lar rises — it’s a clas­sic case of risk-based pat­tern,” Kengo Suzuki, chief cur­rency strate­gist at Mizuho Se­cu­ri­ties, told Bloomberg News.

The South Korean won gained 0.76 per­cent against the U.S. dol­lar af­ter also ris­ing more than 1 per­cent on Wed­nes­day. The cur­rency of Asia’s fourth-largest econ­omy has weak­ened about 10 per­cent against the green­back from a yearly low in April.

The South Korean cen­tral bank has stuck to keep­ing key in­ter­est rates at a record low of 1.5 per­cent in re­cent months, fol­low­ing four re­duc­tions since Au­gust 2014.

Other Asia- Pa­cific cur­ren­cies also rose against the U.S. unit: the In­dian rupee rose 0.06 per­cent and the Sin­ga­pore dol­lar de­clined 0.29 per­cent.

Malaysia’s ring­git was down 0.16 per­cent, the In­done­sian ru­piah edged 0.15 per­cent lower and the Thai baht lost 0.16 per­cent.

With fi­nan­cial mar­kets in China and Hong Kong closed on Thurs­day for a public hol­i­day, traders will pay at­ten­tion to U.S. un­em­ploy­ment fig­ures for Septem­ber, which Washington will re­lease Fri­day.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.