Emerging Asia currencies struggle as Fed move looms— Stocks in Indonesia, Thailand and the Philippines fell, with the Philippine Stock Exchange down by more than 6%.
Currency Asian developing countries continued to fall on Thursday, as traders took varied messages about the U.S. Federal Reserve’s stimulus program, despite positive Chinese manufacturing data is providing support.
Reuters reported, Indian rupee slumped to a new record low of 65.27 against the U.S. dollar before recovering slightly to 65.15 in afternoon Asian trade, still down considerably from 64.72 on Wednesday afternoon.
Indonesian rupiah was trading at 10,958 against the U.S. dollar compared to 10,945 the previous day, while the Thai baht was at 32.12 compared with 31, 77.
The Malaysian ringgit and the Philippine peso also slid as investors cut bullish bets before a long weekend.
Minutes of the Fed’s policy meeting July showed council members have differing opinions about when to reduce the purchase of 85 billion per month bonds, known as quantitative easing (QE). Several Fed officials support the “reduction” as soon as next month, while others say the banks need to see more evidence that the U.S. economy is strong enough.
Boss Ben Bernanke Fed has said it will not withdraw stimulus scheme until the economy can stand on its own two feet and the unemployment rate below seven percent. in Tokyo on Thursday, the dollar rose to 98.21 yen from 97.67 yen in New York on Wednesday afternoon, while the euro bought 1.3340 dollars from 1.3359 dollars.