Green­back stronger against emerg­ing mar­ket cur­ren­cies

The China Post - - MARKETS -

The U. S. dol­lar was lit­tle changed against most of its Asi­aPa­cific peers on Fri­day as for­eign ex­change deal­ers looked ahead to closely watched U.S. em­ploy­ment fig­ures re­leased later in the day.

A hand­ful of cur­ren­cies in­clud­ing the South Korean won fell against the dol­lar as most re­gional eq­uity mar­kets paused af­ter a two-day rally mark­ing the be­gin­ning of the month.

With an­a­lysts hop­ing for fresh clues from the U.S. jobs re­port on whether the Fed­eral Re­serve will change its mon­e­tary pol­icy this year, the green­back edged up against a hand­ful of other cur­ren­cies from emerg­ing economies.

“To­day’s U.S. pay­rolls num­ber has once again been la­beled a ‘ much watch,’” Chris We­ston, chief mar­kets strate­gist at IG Mar­kets, said.

“To be fair, I think traders are get­ting a bit ex­hausted of these event risks which are sup­posed to carry so much weight that they can al­ter the in­vest­ment land­scape.”

Eq­uity mar­kets have seen a spike in volatil­ity since China sud­denly de­val­ued its yuan cur­rency in Au­gust, trig­ger­ing the largest quar­terly sell­off since 2011.

The tur­moil in fi­nan­cial mar­kets was a key fac­tor the Fed held off rais­ing near-zero in­ter­est rates in Septem­ber, but in­vestors still ex­pect the hike to come be­fore the end of the year.

The won de­clined 0.35 per­cent against the U.S. unit, while the Malaysian ring­git was down 0.29 per­cent, the Sin­ga­pore dol­lar fell 0.20 per­cent, and the Thai baht lost 0.21 per­cent.

Other Asia- Pa­cific cur­ren­cies rose against the dol­lar: the “Aussie” ad­vanced 0.27 per­cent to 70.49 U.S. cents, the In­dian rupee rose 0.11 per­cent, and the In­done­sian ru­piah gained 0.10 per­cent.

With the un­em­ploy­ment rate ex­pected near seven-year lows, a strong read­ing in the un­em­ploy­ment fig­ures will likely add to calls for the U.S. cen­tral bank to start rais­ing rates grad­u­ally, putting fur­ther pres­sure on emerg­ing economies as in­vestors take out their cash to seek bet­ter re­turns in the U.S.

The U.S. unit rose to 120.05 yen from 119.93 yen Thurs­day in New York, while the euro traded at US$1.1169 and 134.08 yen from US$1.1187 and 134.16 yen in U.S. trade.

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