Southeast Asian majors are rallying US dollar



image During early Asian deals on Wednesday, most Southeast Asian currencies gained ground against the US currency hitting multi-month highs as a rise in Asian stocks boosted demand for emerging-market assets.

Asian stock markets are trading in positive territory Wednesday, with better-than-expected data on US manufacturing and retail sales front rising optimism about a swift economic revival. The South Korean market, Hong Kong, Singapore and Taiwan are trading sharply higher today. Indonesia and New Zealand are also higher, but with modest gains. At the same time, the Shanghai market is trading weak, as its benchmark Shanghai Composite Average dropped by 1.6%. Asian stock markets had closed Tuesday deals on a mixed note.

Extending its 2-day winning streak, the Singapore dollar spiked higher against the US dollar on Wednesday morning in Asia. The domestic unit rose to 1.4155 against the buck around 10:45 pm ET, the highest level since December 18, 2008. If the Singapore currency strengthens further, it may find target around the 1.416 level. The pair was worth 1.4193 at Tuesday’s New York session close.

The Malaysian ringgit reached a high of 3.4865 against the US dollar in early Asian deals on Wednesday. This set the highest mark for the ringgit since June 8. The USD/MYR pair is currently worth 3.4925 with 3.469 seen as the next target level. The pair closed Tuesday’s New York trading at 3.5025. Today, Malaysia is scheduled to release its consumer price index for August and most analysts are expecting the inflation rate to hold steady at -2.4% on year.

During early Asian trading on Wednesday, the South Korean won showed strength against the US dollar. At 8:15 pm ET, the won climbed to 1209.3 against the greenback. This set the highest level for the South Korean currency since October 15, 2008. On the upside, 1186.9 is seen as the next target level for the won. The USD/KRW rally that closed Tuesday’s New York trading at 1212.5 is presently quoted at 1211.7.

The Thai baht advanced to 33.7650 against the US dollar on Wednesday morning in Asia. This set the highest point for the Thailand currency since September 24, 2008. If the Thai baht gains further, 33.69 is seen as the next target level. The USD/THB pair closed Tuesday’s deals at 33.92.

Against the US dollar, the Taiwan dollar edged higher during Wednesday’s early Asian deals. At 12:00 am ET, the Taiwan currency reached a 2-day high of 32.55 versus the greenback, compared to 32.587 hit late New York Tuesday. On the upside, the Taiwan currency may find target around the 32.515 level.

The Chinese yuan edged higher against its US counterpart on Wednesday morning in Asia. The yuan rose to an 8-day high of 6.8275 against the greenback by 10:00 pm ET, compared to 6.83 hit late New York Tuesday. The yuan may find resistance near the 6.827 level, if it gains further. The People’s Bank of China has set today’s central parity rate for the USD/CNY rally at 6.8281. The pair is allowed to move 0.5% above or below the target rate.

The Philippine peso that declined against the US dollar in early Wednesday Asian deals reversed direction after touching a low of 48.40 at 9:15 pm ET. At present, the USD/PHP pair is trading near yesterday’s close of 48.12. If the peso climbs further, it may likely target the 47.80 level.

The Indian rupee climbed to a 2-day high of 48.3650 against the US dollar during Wednesday’s early Asian deals. The next upside target level for the Indian currency is seen around 48.19. The USD/INR pair that closed Tuesday’s North American session at 48.46 is currently trading at 48.45.

ECJ




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