Emerging Asia currencies up after poor US data
AFPTOKYO--Currencies continued their will-they-won't-they dance over the Federal Reserve stimulus drawdown in Asian trade Monday after poor U.S. new-home data offered some support to emerging market units.
August 27, 2013, 12:04 am TWN
The Indian rupee, which tumbled to a record low of 65.56 to the dollar last week, fetched 64.23 to the dollar in Tokyo morning trade against 64.45 Friday afternoon.
The Indonesian rupiah edged up to 10,770 from 10,963.
Against the yen, the greenback slipped to 98.51 from 98.71 yen in New York Friday afternoon while the euro bought US$1.3380 and 131.90 yen compared with US$1.3381 and 132.11 yen.
Expectations of an end to the U.S. stimulus program have seen foreigners in recent months repatriate some of the vast sums that have poured into emerging economies, hitting currencies and equities.
The dollar was under pressure after the Commerce Department on Friday reported new-home sales in July plunged more than expected from June, by 13.4 percent, the biggest month-on-month drop in more than three years.
The disappointing data raised questions about whether the Federal Reserve would go ahead with its expected announcement of stimulus tapering at its Sept. 17-18 policy meeting.
“There is continued strong focus on indicators to predict when the Fed will begin tapering,” Kengo Suzuki, forex strategist at Mizuho Securities, told Dow Jones Newswires.
Against other Asian currencies the dollar slipped to 44.19 Philippine pesos from 44.26 pesos on Friday, and to 31.91 Thai baht from 31.94 baht.
The greenback also fell to 1,113.20 South Korean won from 1,116.43 won, to 44.20 Philippine pesos from 44.26 pesos, and to SG$1.2791 from SG$1.2805.
The Australian dollar rose to 90.39 U.S. cents from 90.05 cents. The Chinese yuan fetched 16.07 yen against 16.13 yen.