Asian currencies dip after Yuan depreciation and Singapore surprise
On Thursday, many Asian currencies, such as the Chinese Yuan tumbled abruptly against the greenback. The markets were caught of guard because the Singapore major bank dared to restrain the overall appreciation of its national currency to ensure growth.
The biggest one-day depreciation since January was faced by the Chinese Yuan. The Singapore dollar also demonstrated the most impressive one-day slide in 2016. Then, the South Korean won sagged right after the ruling party lost its parliamentary majority.
In recent weeks, Asian currencies strengthened against the US dollar, partially because the Fed had given an apparent sign that it would increase its interest rates at rather a slow rate in 2016. At February’s gathering, the G20’s economic policy makers agreed to prevent driving a currency war via competitive devaluation.
By the way, the Yuan’s weakening against its American counterpart weighed on most currencies throughout the region, right after a 0.46% depreciation, which appeared to be the most enormous since January.