Asia FX mostly higher

(Reuters) – Most Asian currencies were firmer on Monday as the dollar weakened broadly after disappointing wage data raised questions about the pace of U.S. increases next year.

November’s employment report showed U.S. non-farm payrolls rose by 228,000 jobs last month, better than expected, while average hourly earnings rose five cents or 0.2 percent.

Anaemic earnings growth is likely to keep the Fed wary about raising rates too fast, Mizuho bank said in a report.

The Philippine peso led regional gainers on Monday, rising more than quarter of a percent, bolstered by a rating upgrade by Fitch.

Fitch Ratings raised the Philippines’ sovereign credit rating, citing the nation’s strong economic performance and policies and pointing to no immediate impact on investment from President Rodrigo Duterte’s deadly war on drugs.

The Indian rupee edged up on the back on strong foreign inflows. While most regional equity markets witnessed foreign outflows, Indian equities have received inflows of about $150 million this month, exchange data showed.

China’s yuan inched up following a firmer midpoint rate, while the Malaysian ringgit and the South Korean won also advanced on the day.

Stephen Innes, head of Asian trading at currency broker Oanda, said he is most positive on the ringgit among Asian currencies.

“I am convinced that we are going towards a in January, which is a positive for the ringgit. I am also of the view, the government and the BNM are favouring a stronger currency.” Innes said.

Business-Standard Via Reuters

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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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