The rupiah rallied against the dollar on Tuesday to rebound from steep losses in the previous session as the UK policy reversal did much to improve global market sentiment and push the pound up significantly from lows. last week, which kept the greenback down.
According to Bloomberg, the national currency gained 81.55 to the dollar after opening at 81.65, compared to its previous close of 81.88, which was not far from its record low of 81.95 against the greenback.
PTI reported that the national currency rose 31 paise to 81.51 against the US dollar in early trade.
However, the rise in the price of crude in the international market has limited the rupiah, traders told PTI.
As U.S. economic data revealed a slowdown in manufacturing, the dollar lost traction on lower Treasury yields, suggesting that the impact of rapid rate hikes in the Federal Reserve has already made itself felt.
The rally in the pound has eased some market concerns, but the dollar’s continued gain is keeping many major currencies close to all-time lows and worrying Asian governments.
The Japanese currency, for example, hit 145 to the dollar on Monday – a level that prompted government intervention last week. It last traded at 144.71.
At $0.9823, the euro was about three cents higher than its 20-year low the previous week.
Chinese authorities have implemented a series of strategies to strengthen the yuan, ranging from unusually strong market signals to administrative actions that increase the cost of selling the currency.
The Australian dollar faltered ahead of the Reserve Bank of Australia’s policy decision, and the New Zealand dollar held steady at $0.5715 at the Reserve Bank of New Zealand meeting on Wednesday.
“Greater volatility is almost certainly assured as currency markets refocus on U.S. recession risks, which continue to build,” Miles Workman, senior economist at ANZ, told Reuters, referring to the data. on Friday’s U.S. jobs as the next major data point on the horizon.