US dol­lar steady against emerg­ing mar­ket cur­ren­cies

The China Post - - BUSINESS INDEX & -

The U.S. dol­lar faced selling pres­sure against ma­jor cur­ren­cies but strength­ened against most of its Asia-Pa­cific peers Mon­day as con­cerns over emerg­ing economies re­mained strong de­spite an ex­pected de­lay in Washington’s rate hike.

The U.S. unit edged up to 119.97 yen in Tokyo af­ter­noon trade from 119.92 in New York late Fri­day but still down from 120.05 in Tokyo ear­lier that day.

The euro rose to US$1.1235 and 134.78 yen in Tokyo from US$1.1219 and 134.53 yen in U.S. trade.

“(U.S.) dol­lar-selling sen­ti­ment is grow­ing against ma­jor cur­ren­cies af­ter the job re­ports,” Mi­nori Uchida, head of Tokyo global mar­kets re­search at Bank of Tokyo-Mit­subishi UFJ, told AFP.

The U.S. La­bor Depart­ment’s Septem­ber re­port showed stalling job growth in the past two months, stag­nat­ing wages, and the par­tic­i­pa­tion rate fall­ing to a 38-year low, damp­en­ing the like­li­hood of a rate hike by the U.S. Fed­eral Re­serve in Oc­to­ber.

“The Fed is ex­tremely un­likely to be­gin pol­icy nor­mal­iza­tion as soon as this month and De­cem­ber is look­ing ten­u­ous too,” Philip Borkin, a se­nior economist in Auck­land at ANZ Bank, said in a client note, ac­cord­ing to Bloomberg News.

Calls on the Fed to raise in­ter­est rates were putting re­newed pres­sure on emerg­ing economies as in­vestors with­draw their cash to seek bet­ter re­turns in the U.S.

But Tokyo-Mit­subishi’s Uchida said: “The (U.S.) dol­lar should not be so weak against Asian cur­ren­cies as play­ers still can’t see many en­cour­ag­ing fac­tors to sup­port the re­gional cur­ren­cies right now.”

In Tokyo af­ter­noon trade, the Sin­ga­pore dol­lar fell by 0.03 per­cent from Fri­day against the U.S. unit and the South Korean won slipped 0.69 per­cent. The In­dian rupee de­clined 0.30 per­cent and the In­done­sian ru­piah edged down 0.60 per­cent while the Thai baht was flat.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.