EM Asia Currencies strengthen

Jan 19 (Reuters) – Asian currencies strengthened on Friday as the dollar languished on fears over a U.S. government shutdown and as China’s strong economic growth figures boosted sentiment in the region.

The dollar index was down 0.165 at 90.35, hovering near the three-year low of 90.104 it hit on Thursday.

The U.S. House of Representatives on Thursday passed a bill to fund government operations through Feb. 16 and avoid agency shutdowns this weekend when existing money expires. The bill must still be approved by the Senate, where it faces some uncertainties. “If a shutdown occurs, history tells us the dollar will sell off marginally in the ensuing weeks but the scope for weakness will be somewhat limited,” said Stephen Innes, head of trading in Asia-Pacific for Oanda in Singapore.

“We should expect investors to look past Washington contempt regardless of the length of the interruption but apparently from a more risk adverse perspective.”

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