US dol­lar declines on up­beat trade data in In­done­sia, strong ex­port in Malaysia

The China Post - - BUSINESS INDEX & -

Wan­ing ex­pec­ta­tions of an early rise in U.S. in­ter­est rates helped higher- yield­ing cur­ren­cies ad­vance against the U.S. dol­lar again Wed­nes­day.

The In­done­sian ru­piah and the Malaysian ring­git led gains on up­beat In­done­sian trade data and strong Malaysian ex­port fig­ures for Au­gust.

Mean­while the yen rose for the sec­ond straight day against the U.S. dol­lar af­ter the Bank of Ja­pan (BOJ) de­cided against in­creas­ing its al­ready huge stim­u­lus mea­sures.

The data from the two South­east Asian na­tions con­trib­uted to a gen­er­ally con­fi­dent out­look de­spite on­go­ing wor­ries about China, the world’s num­ber two econ­omy and big­gest energy user.

Anx­i­ety has pushed in­vestors out of higher-yield­ing but higher-risk emerg­ing mar­ket cur­ren­cies since main­land China de­val­ued the yuan in Au­gust.

That move trig­gered a sweep­ing sell­off that wiped tril­lions in val­u­a­tions from global mar­kets. “The ru­piah was sold off quite sharply be­fore sen­ti­ment turned, so the ad­just­ment may be also quite large,” Koji Fukaya, the Tokyo-based chief ex­ec­u­tive of­fi­cer at FPG Se­cu­ri­ties, told Bloomberg News.

“Sen­ti­ment is turn­ing bet­ter in emerg­ing mar­kets” and the ru­piah could strengthen to 13,700 over the next three weeks, he said.

In Malaysia, the ring­git surged the most since 1998 af­ter monthly ex­ports jumped more than forecast in Au­gust.

In Asia-Pa­cific cur­rency trade, the U.S. dol­lar de­clined to 120.00 yen on Wed­nes­day af­ter­noon in Tokyo af­ter the BOJ de­cided to hold fire on fresh stim­u­lus mea­sures de­spite slug­gish growth and stag­nant prices, and Ja­panese stocks ex­tended gains to a sixth ses­sion.

The U.S. unit was down from 120.28 yen be­fore the BOJ de­ci­sion Wed­nes­day and from 120.21 yen in New York Tues­day.

The ru­piah surged 3.43 per­cent against the green­back and the ring­git gained 3.07 per­cent.

The Thai baht was 0.88 per­cent higher, the Sin­ga­pore dol­lar rose 0.26 per­cent, the Korean won ad­vanced 0.37 per­cent and the Aus­tralian dol­lar edged up 0.34 per­cent.

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