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Asian FX gains after US data eases interest rate worries

Published 05/10/2023, 05:05 pm
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Investing.com - Asian emerging market currencies and equities witnessed a recovery on Thursday, as mixed US economic data eased concerns about further increases in US interest rates. This development pulled Treasury yields away from 16-year highs.

Equity markets in Indonesia, Singapore and Taiwan experienced gains between 0.4% and 1.2% while equities in the PhilippinesSouth Korea, and Thailand dipped by 0.2% and 1.1%, respectively.

The Indonesian rupiah was flat and the Malaysian ringgit advanced by 0.2%. Indonesia's 10-year yields were near 11-month highs of 7.148%.

The Philippine peso climbed by 0.2%, while equities fell by 1.1% following data that revealed a rise in consumer prices in the country for the second consecutive month in September.

Likewise, South Korea's consumer inflation exceeded expectations in September, accelerating for the second month in a row. The South Korean won appreciated by 0.2% as equities dipped by 0.2%.

Thailand's baht inched 0.1% lower after September's inflation figures came in below expectations. However, equities in Bangkok dropped by 0.2%, and Thai 10-year benchmark yields fell to 3.312%.

The Singapore dollar and the Taiwan dollar both appreciated by 0.1%.

The Indian rupee also experienced a slight increase. According to a Reuters poll, the Reserve Bank of India is expected to maintain the current interest rates when the policy committee convenes on Friday.

Meanwhile, markets in China remained closed due to a public holiday.

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