A number of currencies in Asia recorded strengthening. For example, the South Korean won which strengthened 0.6% and the Malaysian Ringgit.
The Ringgit is also supported by the new Prime Minister who announced the latest cabinet last week. This Prime Minister is expected to be better than the previous government and able to improve the political climate when the country is experiencing an increase in COVID-19 cases.
Maybank analysts said that the retention of Tengku Zafrul as finance minister is expected to reduce market pressure with a credit moratorium policy and tax incentives.
Quoted from reuters previously mentioned the currency was under pressure. However, this eased when Federal Reserve Chairman Jerome Powell said if the interest rate hike would be carried out in a measurable manner.
Barclays analysts said the market had positive expectations regarding the US central bank’s tapering decision.
Then the Rupiah strengthened 0.3% to record its highest level for 3 weeks and rose more than 1%. Then the Thai Baht also recorded a gain of 0.4% to reach its highest level since July 8.
Manufacturing data in Thailand recorded a strengthening of up to 5.12% compared to last year. But still below the Reuters poll of 11% and June’s 17.58%.
However, the Singapore dollar has weakened even though two weeks ago it had strengthened 1.2% since November 2020.