Yuan rallies as funding cost highest in five months

   Nov 23 (Reuters) - Most Asian currencies firmed on Thursday
as the U.S. dollar weakened after the release of the minutes of
the Federal Reserve's last meeting revealed dovish tones. 
    The minutes showed some of the central bankers' concerns
regarding the inflation outlook, with emphasis placed on
economic data in determining the timing of future rate rises.
    
    "The narrative in the Asian currencies is almost like a
reflationary storyline. That is really spilling over from last
week in the sense we have had just continual positive GDP prints
across the Asian space and this has just got everybody wondering
what is the next central bank narrative going to be," said
Stepehen Innes, head of trading for Asia at Oanda in Singapore.
    Local currencies have been supported by strong economic
data, with the Philippines, Malaysia and Thailand having
reported third-quarter gross domestic product (GDP) numbers
which have beaten expectations since Nov. 16. Malaysia grew at
the fastest pace in over three years.

Reuters

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

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and 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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