Share

Emerging currencies lifted by oil, equity market rebound

Tokyo - Emerging currencies climbed on Friday as investors moved into riskier assets following a rebound on key equity markets and as oil prices rallied from multi-year lows.

The advances came towards the end of another volatile week across trading floors, where have seen trillions wiped off valuations since the beginning of the year.

Confidence was given a boost by Wall Street's rally on Thursday, which came on the back of a recovery in oil prices after falling below $30 for the first time in 12 years.

With most Asia equities markets pushing higher, dealers sought out riskier, higher-yielding, currencies in favour of the dollar.

Oil-reliant Malaysia's ringgit climbed 0.30%, while the Taiwan dollar gained 0.24% and the Thai baht put on 0.15%. South Korea's under-pressure won added 0.12%.

The greenback also edged down to ¥117.87 from ¥118.06 on Thursday in New York, while the euro rose to $1.0878 against $1.0865. The single currency slipped to ¥128.24 from ¥128.27.

Besides higher oil prices, sentiment was lifted by comments emphasising worries about low inflation from James Bullard, head of the Federal Reserve's St. Louis branch.

His comments suggested the Fed - which holds a meeting later this month - might be cautious about additional rate hikes after increasing the federal funds rate for the first time in nine years in December.

Investors are also awaiting the European Central Bank's policy meeting next week after it unveiled fresh monetary policy measures last month that were widely dismissed as underwhelming.

Many analysts are betting on a stronger dollar this year as the Fed tightens policy - a plus for the unit - while its European and Japanese counterparts move in the opposite direction.

But "there are some doubts there may be any further (easing) on the cards" from Europe, Neil Jones, head of hedge-fund sales at Mizuho Bank, told Bloomberg News.

"If the ECB doesn't ease further then the sovereign divergence closes up. Hence the euro is higher."

 

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.90
+0.2%
Rand - Pound
23.85
+0.2%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.31
+0.2%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders