Friday, June 20, 2025

Dollar slump props up FX

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Currencies across the region have been propped up by broad weakness of the dollar amid Sino-US tensions and doubts over the latest round of US stimulus, and many eked out gains again on Friday.

“Forex markets’ US-China rhetoric herd-immunity appears to be getting stronger by the day, as they accept the conflict as the new norm,” said Jeffrey Halley, a market analyst at trading platform OANDA.

A Reuters poll on Thursday showed that investors had raised their long bets on the Chinese yuan and most other Asian currencies, on signs of a recovery in the world’s second-largest economy and news of progress in coronavirus vaccine trials.

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The Thai baht eased 0.2 percent, however, and was set to weaken for the fourth successive week as policy uncertainty lingered.

Policymakers had earlier feared that a rapid rise in the currency could hinder Thailand’s economic recovery and the June data showed exports sank 23 percent from a year earlier, the worst since July 2009.

Indonesia’s rupiah strengthened for the fourth straight day and continued to recoup the more than 2 percent loss it suffered last week.

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