AFP, Tokyo :
Emerging market currencies strengthened against the dollar Thursday, helped by an upbeat mood across Asian equity markets on speculation of increased monetary stimulus.
But the greenback’s losses were unlikely to hold as sentiment remained dented on worries over a slowdown in China’s economy and concerns over a Federal Reserve plan to hike near-zero interest rates in 2015, analysts said.
The Australian dollar climbed 0.54 percent to 70.55 US cents Thursday.
“When risk sentiment improves, the euro falls and the Australian dollar rises-it’s a classic case of risk-based pattern,” Kengo Suzuki, chief currency strategist at Mizuho Securities, told Bloomberg News.
“Right now, it’s developed-nation currencies versus emerging and commodities-linked ones which take their cues from stocks that either fuel or ease risk aversion sentiment.”
The South Korean won gained 0.65 percent against the dollar after also rising more than one percent on Wednesday. The currency of Asia’s fourth-largest economy has weakened about 10 percent against the greenback from a yearly low in April.
The South Korean central bank has stuck to keeping key interest rates at a record low of 1.5 percent in recent months, following four reductions since August 2014.
Other Asia-Pacific currencies also rose against the US unit: the Taiwan dollar was up 0.70 percent, the Indian rupee rose 0.34 percent, and the Thai baht added 0.14 percent.
Emerging market currencies strengthened against the dollar Thursday, helped by an upbeat mood across Asian equity markets on speculation of increased monetary stimulus.
But the greenback’s losses were unlikely to hold as sentiment remained dented on worries over a slowdown in China’s economy and concerns over a Federal Reserve plan to hike near-zero interest rates in 2015, analysts said.
The Australian dollar climbed 0.54 percent to 70.55 US cents Thursday.
“When risk sentiment improves, the euro falls and the Australian dollar rises-it’s a classic case of risk-based pattern,” Kengo Suzuki, chief currency strategist at Mizuho Securities, told Bloomberg News.
“Right now, it’s developed-nation currencies versus emerging and commodities-linked ones which take their cues from stocks that either fuel or ease risk aversion sentiment.”
The South Korean won gained 0.65 percent against the dollar after also rising more than one percent on Wednesday. The currency of Asia’s fourth-largest economy has weakened about 10 percent against the greenback from a yearly low in April.
The South Korean central bank has stuck to keeping key interest rates at a record low of 1.5 percent in recent months, following four reductions since August 2014.
Other Asia-Pacific currencies also rose against the US unit: the Taiwan dollar was up 0.70 percent, the Indian rupee rose 0.34 percent, and the Thai baht added 0.14 percent.
