Weaker Dollar Boosts Asian Currencies Amid Softer US Data

Asian currencies experienced a relief rally at the end of the week as softer US economic reports reduced expectations for another Federal Reserve interest rate hike in September.

The Taiwan dollar was one of the standout performers, recording its biggest daily gain in four months and reaching its strongest level in over a month, supported by foreign flows into Taiwanese equities.

The Indonesian rupiah also appreciated, gaining 0.36% for the week, although its precise figures still require independent confirmation.

The dollar index fell to around 99.67 on Friday, down about 0.25%, following a series of US data releases that showed July producer prices were unchanged from June, and consumer inflation moderated.