Asian currencies headed for their best week in two months, led by Malaysia’s ringgit and Thailand’s baht, as improvements in U.S. economic data eased concern that global growth is slowing.
The Bloomberg JPMorgan-Asia Dollar Index (ADXY) halted a three-week slide to advance 0.3 percent after reports showed U.S. jobless claims fell more than economists estimated and the nation’s services industry expanded. Emerging-market currencies had their worst start to a year since 2008 following a rout in Turkey’s lira and a devaluation in Argentina’s peso as the Federal Reserve pressed ahead with a plan to slow the pace of its monthly bond purchases by $10 billion.
“The selloff is clearly overdone, and there’s a need to distinguish the good and bad ones within the EM bloc,” said Roy Teo, a Singapore-based currency strategist at ABN Amro Bank NV. “The recovery remains fragile given the headwinds from Fed tapering concerns.”
Content 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 Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Latest posts by marketpulsefxstaff (see all)
- Oil Remains Near Multi-Month Lows - 6 August 2015
- U.S. Dollar Higher on Recent Data - 6 August 2015
- Greece’s PM Tsipras: Loan Deal with Lenders Close - 6 August 2015