Most emerging Asian currencies edged up on Friday as the dollar slipped after tepid US economic data casts doubts on whether the Federal Reserve will raise rates again this year, according to Reuters.
US consumer spending rose slightly less than expected in July and annual inflation increased at its slowest pace since late 2015, making the dollar surrender early gains against a basket of major currencies.
The dollar index, which tracks the greenback against a basket of six rival currencies, edged down 0.1 per cent to 92.619, poised to shed 0.1 per cent for the week.
Investors’ focus now turns to the monthly US payrolls report, to be released later in the day.
In Asian currencies, China’s yuan rose as much as 0.2 per cent, hitting a fresh 14-month high, while the Taiwan dollar climbed to its highest since June 9, up as much as 0.3 per cent.
The Indian rupee inched down slightly, after data showed the country’s growth unexpectedly slid to a three-year low in the last quarter.
Markets in Philippines, Malaysia, Indonesia and Singapore were closed for holidays. The Singapore dollar, however, was open for trade.
South Korea’s won strengthened early on Friday as the country’s exports saw another big rise while annual inflation accelerated, raising the prospect of tighter monetary policy.
The won stood at 1,122.7 against the dollar as of 0236 GMT, 0.5 per cent firmer than Thursday’s close of 1,127.8.
The Chinese yuan on Friday rose to its highest against the dollar in 14 months, buoyed by strong guidance while the dollar remained under pressure.
Prior to the market open on Friday, the People’s Bank of China raised its official yuan midpoint to 6.5909 per dollar, past the key psychologically important 6.6 level for the first time since June 2016.
© 2017 - All Rights with The Financial Express