Dollar stronger on China worries

AFP, TOKYO: The dollar rose against emerging currencies yesterday on renewed fears about a slowdown in the global economy and following comments from a top Federal Reserve official suggesting a US interest rate hike could still come this year.
Official Chinese figures Monday showed the world’s number two economy grew at its slowest pace in six years in July-September, although slightly quicker than expected.
While not as bad as forecast, the figures helped sow doubt on trading floors, sapping confidence that has helped higher-risk assets such as the Indonesian rupiah and Malaysian ringgit rally this month.
Analysts warned the recent gains—fuelled by hopes of fresh Chinese stimulus and a delay to a US rate rise—may have run their course.
Matthew Sherwood, head of investment strategy at Perpetual Ltd. in Sydney, said in an email to clients: “The three-week recovery is approaching an exhaustion point.” “The key question for investors is how much can growth accelerate in the December quarter and will there be more policy stimulus.

Dollar stronger on China worries

AFP, TOKYO: The dollar rose against emerging currencies yesterday on renewed fears about a slowdown in the global economy and following comments from a top Federal Reserve official suggesting a US interest rate hike could still come this year. Official Chinese figures Monday showed the worlds number two economy grew at its slowest pace in six years in July-September, although slightly quicker than expected. While not as bad as forecast, the figures helped sow doubt on trading floors, sapping confidence that has helped higher-risk assets such as the Indonesian rupiah and Malaysian ringgit rally this month. Analysts warned the recent gainsfuelled by hopes of fresh Chinese stimulus and a delay to a US rate risemay have run their course. Matthew Sherwood, head of investment strategy at Perpetual Ltd. in Sydney, said in an email to clients: The three-week recovery is approaching an exhaustion point. The key question for investors is how much can growth accelerate in the December quarter and will there be more policy stimulus.