Emerging-market currencies including South Africa’s rand and the Turkish lira rose a fourth day on improving growth reports as global central banks keep the economy awash in cheap money.
New Zealand’s dollar dropped after the central bank said it would pause interest-rate increases after raising its official cash rate to 3.5 percent, from 3.25 percent. Australia’s dollar climbed to the highest level in almost two weeks against its U.S. peer as traders pared bets on a cut in interest rates after a jump in inflation. Indonesia’s rupiah jumped the most in two weeks after Joko Widodo was named the nation’s next president. The euro was little changed against the greenback and yen.
Emerging-market currencies “will do well at a time when the data is good but policy makers are highlighting that they’re going to take it slowly,” said Phyllis Papadavid, a senior global-currency strategist at BNP Paribas SA’s corporate and investment-banking unit in London. “We would expect that the dollar would stay resilient and outperform against the yen and the euro on the basis of the better U.S. data we’re seeing.”
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