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.”
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