Asia currencies nudge higher

Most Asian currencies edged up on Tuesday as the dollar came under renewed pressure, with the Thai baht hitting its strongest in more than two years and the won climbing to a 1-month high.

Uncertainty over the pace of the Federal Reserve’s policy tightening and worries that President Donald Trump will fail to deliver healthcare reforms hit the dollar.

A second attempt to pass a revised Rupublican healthcare bill in the Senate collapsed on Monday after two Republican Senators announced their opposition.

The dollar’s index against a basket of six major currencies sank to a more than 10-month low of 94.74.

“We are seeing more of dollar sell-off and chase for yields into Asia currencies right now.” said Stephen Innes, head of trading at OANDA Asia

“This is why we are seeing the currencies trading a little bit favourably. The currencies which are having higher yields are attracting inflows right now.”

nikkei Asia Review

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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