AFP, Tokyo :
The dollar edged down for a second day against emerging market currencies in Asia Friday as dealers focus on the pace of the expected rise in US interest rates.
Confidence among traders has been boosted after minutes from the Federal Reserve Wednesday showed its policymakers are satisfied the US economy is strong enough to withstand a rate hike next month.
The key beneficiaries have been the Malaysian ringgit and Indonesia’s rupiah, which each surged more than one percent Friday following healthy gains the day before.
“The pullback seen in the US dollar in the wake of the Fed minutes does seem to reflect a lot of uncertainty around the pace of rate hikes by the Fed,” Angus Nicholson of IG told clients in an email.
The dollar edged down for a second day against emerging market currencies in Asia Friday as dealers focus on the pace of the expected rise in US interest rates.
Confidence among traders has been boosted after minutes from the Federal Reserve Wednesday showed its policymakers are satisfied the US economy is strong enough to withstand a rate hike next month.
The key beneficiaries have been the Malaysian ringgit and Indonesia’s rupiah, which each surged more than one percent Friday following healthy gains the day before.
“The pullback seen in the US dollar in the wake of the Fed minutes does seem to reflect a lot of uncertainty around the pace of rate hikes by the Fed,” Angus Nicholson of IG told clients in an email.
