Emerging market currencies weaken as dollar hits 6-week high
Edward White | October 04, 2018
Emerging market currencies were lower in Asia on Thursday amid continued dollar strength after markets were buoyed by solid US economic data overnight. The dollar index, a measure of the greenback against a basket of peers was 0.3 per cent higher at 96.046, a six-week high. The Indonesian rupiah slipped a further 0.7 per cent to a fresh two-decade low of Rp15,175 per dollar. The Korean won was off 0.4 per cent at Won1,129, near a three-week low. The offshore renminbi, which is not subject to China’s official trading band, was down 0.3 per cent at Rmb6.9071, and hovering near its weakest level since August. And India’s rupee was down 0.6 per cent at Rs73.765, a new record low. Amid the wider trend of dollar strength and recent currency crises in Argentina and Turkey, emerging market currencies remained in focus; Wednesday saw India’s rupee touch a record low and the rupiah in Indonesia hit its lowest in 20 years after the country’s central bank stepped in to support the currency.