Forex News

Asia FX rises, dollar dips amid easing bank crisis fears

2023.03.17 02:30


© Reuters.

By Ambar Warrick

Investing.com– Most Asian currencies rose sharply on Friday amid easing fears of a global banking crisis, while the dollar retreated as markets also bet that the Federal Reserve will soften its hawkish stance to prevent more economic pain.

was among the best performers for the day, rising nearly 0.5% as a positive outlook on the Chinese economy from Goldman Sachs also boosted sentiment. The investment bank expects China’s economy to grow 6% this year, more than government forecasts of 5%.

Economic data released this week showed that certain facets of the economy were recovering from three years of COVID lockdowns. But growth in the manufacturing sector still remained below full capacity. 

The rose 0.6% and was set to add 1.4% this week, having benefited greatly from increased safe haven demand. A mild improvement in Japan’s massive also helped sentiment towards the yen, amid easing supply chain issues.

Broader Asian currencies advanced amid increased risk appetite, as fears of an imminent banking collapse were eased by several major U.S. lenders supporting First Republic Bank (NYSE:). This came after Swiss lender Credit Suisse Group AG (SIX:) scored an up to $54 billion credit facility from the Swiss National Bank to fortify liquidity levels.

The support for banks, coupled with government reassurances that the banking sector was stable, helped ease concerns over an imminent collapse in the banking system, following the failure of several U.S. banks over the past week.

The and dollar index futures retreated about 0.3% each amid bets that the Fed will taper its hawkish stance to prevent further pressure on the economy from rising interest rates.

The collapse of several U.S. banks in recent weeks was driven largely by a slump in bond prices, to which lenders such as Silicon Valley Bank were disproportionately exposed. 

Markets are now pricing in a nearly 90% chance that the Fed will hike by a smaller 25 basis points next week. 

Risk-heavy Southeast Asian currencies advanced on Friday, with the rising 0.6%, while the added 0.5%.

The rose 0.3% after data showed the island state’s key non-oil exports shrank slightly less than expected in February from the last year.

The rose 0.2%, also benefiting from weakness in oil markets, while the surged 0.8% after logging sharp losses over the past week. 

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 68,803.43 0.04%
ethereum
Ethereum (ETH) $ 2,438.23 1.29%
tether
Tether (USDT) $ 0.999834 0.02%
bnb
BNB (BNB) $ 559.00 0.17%
solana
Solana (SOL) $ 162.23 1.23%
usd-coin
USDC (USDC) $ 1.00 0.03%
xrp
XRP (XRP) $ 0.509206 0.56%
dogecoin
Dogecoin (DOGE) $ 0.171782 9.32%
staked-ether
Lido Staked Ether (STETH) $ 2,438.43 1.21%
tron
TRON (TRX) $ 0.161704 2.12%
cardano
Cardano (ADA) $ 0.331065 0.45%
the-open-network
Toncoin (TON) $ 4.60 4.87%
shiba-inu
Shiba Inu (SHIB) $ 0.000018 4.67%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,882.14 1.37%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 68,728.41 0.16%
avalanche-2
Avalanche (AVAX) $ 23.29 1.37%
weth
WETH (WETH) $ 2,438.36 1.29%
bitcoin-cash
Bitcoin Cash (BCH) $ 339.03 0.18%
chainlink
Chainlink (LINK) $ 10.60 0.37%
leo-token
LEO Token (LEO) $ 6.07 0.10%
usds
USDS (USDS) $ 0.992343 0.86%
sui
Sui (SUI) $ 1.95 3.64%
polkadot
Polkadot (DOT) $ 3.83 0.99%
litecoin
Litecoin (LTC) $ 66.13 1.18%
near
NEAR Protocol (NEAR) $ 3.73 1.55%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,562.24 1.35%
aptos
Aptos (APT) $ 8.25 0.16%
uniswap
Uniswap (UNI) $ 6.97 0.39%
pepe
Pepe (PEPE) $ 0.000008 0.51%
internet-computer
Internet Computer (ICP) $ 7.15 1.41%
dai
Dai (DAI) $ 0.999816 0.06%
bittensor
Bittensor (TAO) $ 429.23 0.35%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.18 2.68%
monero
Monero (XMR) $ 160.30 0.33%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.01%
stellar
Stellar (XLM) $ 0.092087 0.30%
whitebit
WhiteBIT Coin (WBT) $ 18.91 0.06%
ethereum-classic
Ethereum Classic (ETC) $ 18.00 0.81%
kaspa
Kaspa (KAS) $ 0.105273 2.44%
first-digital-usd
First Digital USD (FDUSD) $ 0.999698 0.11%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.299501 0.38%
blockstack
Stacks (STX) $ 1.52 2.40%
okb
OKB (OKB) $ 37.54 0.35%
dogwifcoin
dogwifhat (WIF) $ 2.07 0.20%
filecoin
Filecoin (FIL) $ 3.32 1.87%
crypto-com-chain
Cronos (CRO) $ 0.071999 0.06%
aave
Aave (AAVE) $ 130.34 0.37%
arbitrum
Arbitrum (ARB) $ 0.482958 0.95%
mantle
Mantle (MNT) $ 0.559293 1.00%
immutable-x
Immutable (IMX) $ 1.06 1.29%