Asian Currencies Higher as Fed Signals Slower Tightening

South Korea’s won and Indonesia’s rupiah led gains in Asian currencies after the Federal Reserve signaled slower U.S. interest-rate increases than previously forecast.

The Bloomberg JPMorgan Asia Dollar Index, a gauge of 10 regional currencies, climbed 0.1 percent Thursday, rising for a fourth day. The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major peers, fell the most in six years Wednesday after the Fed opened the door to the first rate increase in almost a decade. The central bank dropped an assurance it will be “patient” in tightening policy and lowered projections for the benchmark and economic growth.

“Bets on the greenback’s gains declined sharply as expectations of early U.S. rate increases moderated,” said Hong Seok Chan, a Seoul-based currency analyst at Daishin Economy Research Institute.

Bloomberg

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