Most Asian currencies strengthened on Thursday as the U.S. dollar weakened following the Democrats’ sweep of both chambers of Congress. The result eased concerns about political uncertainty and supported appetite for riskier assets, according to the report.
The dollar index fell 0.3% to 101.26. New Zealand’s dollar advanced 0.6% to $0.5651, while the Australian dollar rose 0.2% to $0.7015. The yen gained 0.3% to 157.93 per dollar, and the Singapore dollar was up 0.2% as the USD/SGD pair declined to 1.2764.
The euro rose 0.3% to $1.1260 and the pound gained 0.2% to $1.3491. China’s yuan recovered slightly: the offshore USD/CNH pair fell 0.1% to 6.6682, while the onshore USD/CNY pair slipped 0.04% to 6.6702. The South Korean won and Taiwan dollar were exceptions, with their respective dollar pairs rising 0.2%.
The kiwi led gains despite weak employment figures in New Zealand. Unemployment reached 5.7% in the third quarter, its highest level since 2015, while employment fell 0.1%. The currency remains about 11% below its level at the end of the Covid pandemic, the report said.
China’s yuan had ended a 13-session winning streak after the People’s Bank of China raised foreign-exchange reserve requirements from 4% to 6%, effective November 15. It is still up more than 4% this year.
Markets are also tracking expectations for Federal Reserve policy and developments in Iran and Ukraine. Investors had priced in an 81.2% chance of at least a 25-basis-point Fed rate increase in December, up from 77.4% previously. October private payrolls increased by 86,000, above the forecast of 69,000, ahead of Friday’s government employment report.
Thursday’s regional data calendar includes Indonesia’s third-quarter GDP, inflation figures from Taiwan and Thailand, Singapore retail sales and a Bank Negara Malaysia policy decision.
Sources: Investing.com News.