Emerging Currencies Soar As US Rate Hike Talk Fades
Faizan Hashmi Published August 01, 2016 | 12:15 PM
TOKYO, (APP - UrduPoint / Pakistan Point News - 1st August, 2016) - Emerging market currencies jumped against the Dollar on Monday as weak US growth data torpedoed speculation of an interest rate hike this year. Friday's report showing the world's top economy expanded 1.2 percent in the April-June quarter poured cold water on expectations the US central bank will raise rates before year's end. Analysts had expected growth closer to 2.6 percent. "The GDP was a massive miss, so I'm not surprised by the huge dollar selloff that ensued," Thomas Averill, a Sydney-based managing director at Rochford Capital, a Currency and rates risk-management company, told Bloomberg news. "The immediate risk at the moment is for a bit of further weakness in the US dollar on the moderated monetary tightening view." The greenback took a hammering on Friday in response to the below-par US growth figures and extended its losses Monday.
The oil-reliant Malaysian Ringgit jumped 0.8 percent, with extra support coming from a pick-up in crude prices, while the South Korean won also was 0.8 percent higher. Taiwan's dollar was up 0.6 percent and the Indonesian rupiah rose 0.5 percent, while the Thai Baht and Philippine peso also booked solid gains. However, the greenback rose to 102.61 Yen from 102.07 yen in New York, although it is still down sharply from 103.58 yen in Tokyo earlier Friday before the US data release. The euro ticked up to $1.1180 and 114.47 yen from $1.1177 and 114.09 yen in US trade. Traders are now awaiting the release of details of a 28 trillion yen fiscal stimulus programme unveiled by Japan's government last week, with Prime Minister Shinzo Abe tipped to make a statement on Tuesday.
Related Topics
Recent Stories
3 Gawadar attack victims funeral offered
Mbappe says he will leave PSG at end of season
Usmani felicitates Sardar Saleem on taking oath as Punjab Governor
DC for provision of facilities to people in Lasbela
Solar storm could bring auroras, power and telecoms disruptions
Court grants interim bail to PTI leaders
Ulema, Mashaykh call for political accountability, collaboration for Pakistan's ..
SHRC asks NADRA to issue CNICs to transgender as per law
Flash floods kill 50 in one day in north Afghanistan
CDA chief expresses commitment to promoting modern-day technologies
By wide margin, UN General Assembly votes to back Palestinian bid for membership ..
Musadik slams PTI's political approach as provocative
More Stories From World
-
Endrick in Brazil's Copa America squad but no Neymar
2 hours ago -
Djokovic bottle strike overshadows Rome Open cruise past Moutet
2 hours ago -
Train crash in Argentine capital leaves 30 injured
2 hours ago -
Pandemic agreement talks to continue beyond deadline
2 hours ago -
Chopra falls short in Doha, Bednarek blitzes before Olympics
2 hours ago -
Djokovic struck with bottle from stands after winning Rome opener
2 hours ago
-
England great Anderson's Test career under threat after McCullum talks - report
3 hours ago -
Senegal launches inquiry into Boeing jet runway crash
3 hours ago -
Madagascan leader's former aide jailed in UK for graft
3 hours ago -
Seven killed as bus crashes into river in Russia's St Petersburg
3 hours ago -
Mbappe confirms he will leave PSG at end of season
4 hours ago -
Fresh rains pound Brazil's flood-hit south as evacuations double
4 hours ago