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.

    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.