Currencies

Hawkish Fed, hot inflation, fragile currencies: ASEAN’s delicate balancing act explained

Navigating energy shocks, a hawkish Fed, dollar pressure, and an AI-driven trade shift amidst regional inflation and fiscal policy volatility with Yun Liu from HSBC.

The common European currency was steady on the day at US$1.1536.

Euro awaits ECB rate hike, dollar muted

An ECB rate hike has long been expected

Carry trades have pushed the Hong Kong dollar towards the weak end of its 7.75-to-7.85 band versus the US dollar.

Hong Kong dollar carry trade appeal dims as funding costs climb

A rising Hibor narrows the interest rate gap between the US dollar and Hong Kong dollar

The US dollar index, which measures the greenback against a basket of currencies including the yen and the euro, was down 0.24% at 99.77.

US dollar eases as Middle East hopes outweigh prospects of higher US rates

Fed funds futures traders see a 70% chance of a hike by December, says financial dashboard CME FedWatch

The rupiah sank to lows a few times in the past week, with the currency breaching the 14,000 threshold against the Singapore dollar on Wednesday.

Strong US dollar and tariff threats ignite broad Asian currency sell-off

Energy shocks drag rupiah and yen to fresh lows as new US tariffs compound pain for won and ringgit

The US dollar held most of the gains made on the back of Friday’s non-farm payrolls report

US dollar eases slightly after Iran says attacks on Israel have ended

The greenback held most of the gains made on the back of Friday’s non-farm payrolls report

A sign showing the exchange rates of the won against other currencies. The South Korean currency has fallen more than 7.5% this year.

South Korea unveils measures to stem won slide, curb speculation

These include tighter scrutiny of offshore currency derivatives and probes into potentially illegal FX transactions

The gap between Japan’s ultra-low interest rates and those in the US and other major economies remain wide.

Japan spent billions to prop up the yen. Why is it still weak?

The US-Israel war with Iran has added fresh pressure on the yen

Bank Indonesia says that it’s intensifying interventions to stabilise the rupiah, which had dropped to a record low.

Asia steps up currency defence as South Korea, Indonesia vow action

Authorities are also guarding against speculative activity in offshore markets