February 23, 2024

Asian Currencies Record Downward Movement, Singapore Facing Worst Situation

It was the recent forex trading session where a significant drop was recorded in the trading prices of the Asian currencies. Two major factors seem to have played a role in causing a slip in the trading prices of the Asian currencies.

Reasons behind Asian Currency Slips

The data suggests that the first reason behind the slippage in the value of Asian currencies is the rise in the value of the USD.

Just as the value of the USD had started falling lower, the Asian currencies were finding themselves in a better position. The Asian currencies were gaining some strength against the USD.

However, the situation changed the moment the US Feds shared the employment plus the inflation data for the month of July.

The employment rate recorded in the United States was much stronger than the estimations. Then it was the inflation rate that was lower than the estimated weakening.

This factor helped push the trading price of the USD and now, currencies from all over the world are facing this problem.

The second reason is the disappointing growth outlook shared by the government of Singapore. The economic growth prediction made by Singapore was much weaker that the estimations of the economists.

This has ended up dragging the economy of all major currencies in Asia in a negative direction.

Performance of Asian Currencies

The data from the Forex trading market shows that in the recent trading session, the value of the Asian currencies moved into the negative zone.

The Chinese yuan ended up experiencing a 0.3% dip versus the USD. The trading value of the Japanese yen has dropped 0.2% versus the greenback.

The Singapore dollar also ended up facing a 0.1% dip. The trading value of the Thai baht versus the USD was unmoved.

USD Index and Dollar Index Futures

According to the latest trading session, the USD index has recorded a 0.2% rise versus the bucket currencies. This is just a minor jump that the USD has recorded in the USD index as it had experienced a 1.1% dip in the Wednesday trading session.

Even the dollar index futures has recorded an upward movement. The data shows that the particular futures index has recorded a 0.2% rise.

The reason behind the Singapore dollar’s demise is the narrow GDP forecast shared by the Singapore Government.

Initially, they had reported a 3% to 5% rise, but they lowered it to 3% to 4%.

Strong Performance of Stock Markets

After the Feds shared positive and promising results, the stock prices moved in a positive direction. Many investors have returned to the stock markets to make investments.

Due to the recent behavior of the investors, the stock markets have also started recording positive gains.

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