Emerging currencies rise ahead of key US jobs report

TOKYO: Emerging market currencies jumped against the dollar yesterday with rising oil prices and upbeat US data lifting sentiment, while investors look ahead to a key US jobs report later in the day.

Friday’s US employment report, which comes on the back of a string of improving data, is expected to show the world’s top economy added 190,000 jobs in February and the unemployment rate held steady at 4.9 per cent.

Also, Saturday marks the start of China’s National People’s Congress, where delegates will sign off on a new five-year economic plan,with hopes for measures to shore up the world’s number two economy.

“It’s on to tonight’s payrolls report for February and what that report says of the state of labour demand from the employment component (and) how much spare capacity there is in the US labour market and the economy in general,” National Australia Bank said in a commentary.

“The focus over the weekend then shifts to China with the official announcement of its growth aspirations and its specific target for 2016.”

Among the emerging currency gainers, the Taiwan dollar rose 0.78 per cent, the South Korean won added 0.50 per cent, the Indonesian rupiah tacked on 0.78 per cent and the oil-linked Malaysian ringgit edged up 0.04 per cent.

The Australian dollar was up 0.13 per cent against the greenback. Better-than- expected growth figures for the fourth quarter supported the Aussie this week, hinting that the resource- dependent economy is picking up pace after several lacklustre quarters.

The uptick in Asia-Pacific currencies mirrored a rise on key regional equity markets Friday.

“The equity flow to emergingmarket Asia has jumped this week,” Ken Cheung, Asian foreignexchange strategist at Mizuho Bank in Hong Kong, told Bloomberg News.

“Rebounding commodity prices have played a role.”

The dollar slipped to 113.58 yen from 113.69 yen in New York, while the euro weakened to US$ 1.0945 and 124.33 yen from US$1.0957 and 124.56 yen. — AFP