Emerging Asian Currencies Surge Amid US-Iran Tensions
Emerging Asian currencies have strengthened against the US dollar as the greenback eased ahead of fresh US data and comments from central bankers. The South Korean won is nearing a 14-month peak, while other regional currencies such as the Thai baht, Indonesian rupiah, and Indian rupee have also gained.
The MSCI gauge of global EM currencies rose 0.3% to a lifetime high as US Treasury yields fell from multi-year highs on oscillating oil prices and ahead of US nonfarm payrolls data. Oil prices edged lower from elevated levels due to uncertainty over renewed military strikes between the US and Iran.
According to Dilin Wu, strategist at Pepperstone, 'Today's Asian bounce is what happens when neither side escalates further overnight. That's more of a relief, not a resolution.'