Most Asian currencies fall as dollar rebounds; baht, rupiah rise
Reuters|
Jan 04, 2018, 12.27 PM IST
Most Asian currencies slipped against the dollar on Thursday after upbeat US economic data, plus minutes from the Federal Reserve's December policy meeting, spurred some recovery for the weak greenback.
The dollar rose on better-than-expected US December factory data, and was further boosted after minutes of the Fed minutes showed a more hawkish stance about the US economy than some anticipated.
"Today's movement is largely driven by the dollar rebound," Sim Moh Siong, FX strategist at Bank of Singapore, said.
Sim said the dollar's rebound likely is short term and it should taper because global recovery should continue to keep the currency softer.
But if US payroll numbers due on Friday are strong, "there could be a bit more dollar strengthening," he added.
Among Asian currencies, the Philippine peso saw its biggest drop in more than three weeks, falling as much as 0.2 per cent to 49.930 to the dollar.
Philippine consumer prices likely increased in December at the same annual pace as in November, a Reuters poll showed. December inflation data is due on Friday.
The Malaysian ringgit shed as much as 0.3 per cent against the dollar. Malaysia is unlikely to meet earlier targets it set for a balanced budget by 2020, the second finance minister said.
BAHT AND RUPIAH
The Thai baht and the Indonesian rupiah were among Thursday's few gainers among Asian currencies. Both currencies rose about 0.2 per cent against the dollar.
Thailand and Indonesia, which are both major commodity exporters, have seen their economies benefit from a recent uptrend in oil prices.
"Rising oil prices will be positive for commodity driven currencies," Sim of Bank of Singapore said.
Oil prices on Thursday remained near levels last seen in late 2014/2015, with markets tightening amid tensions in Iran and due to ongoing OPEC-led production cuts.
The dollar rose on better-than-expected US December factory data, and was further boosted after minutes of the Fed minutes showed a more hawkish stance about the US economy than some anticipated.
"Today's movement is largely driven by the dollar rebound," Sim Moh Siong, FX strategist at Bank of Singapore, said.
Sim said the dollar's rebound likely is short term and it should taper because global recovery should continue to keep the currency softer.
But if US payroll numbers due on Friday are strong, "there could be a bit more dollar strengthening," he added.
Among Asian currencies, the Philippine peso saw its biggest drop in more than three weeks, falling as much as 0.2 per cent to 49.930 to the dollar.
Philippine consumer prices likely increased in December at the same annual pace as in November, a Reuters poll showed. December inflation data is due on Friday.
The Malaysian ringgit shed as much as 0.3 per cent against the dollar. Malaysia is unlikely to meet earlier targets it set for a balanced budget by 2020, the second finance minister said.
BAHT AND RUPIAH
The Thai baht and the Indonesian rupiah were among Thursday's few gainers among Asian currencies. Both currencies rose about 0.2 per cent against the dollar.
Thailand and Indonesia, which are both major commodity exporters, have seen their economies benefit from a recent uptrend in oil prices.
"Rising oil prices will be positive for commodity driven currencies," Sim of Bank of Singapore said.
Oil prices on Thursday remained near levels last seen in late 2014/2015, with markets tightening amid tensions in Iran and due to ongoing OPEC-led production cuts.
