AFP, Tokyo :
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.
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.
