The dollar index, which measures the strength of the greenback against six major peers, was at 104.18
Most emerging Asian currencies and stocks dropped on Thursday, as investors stayed cautious ahead of a key U.S. jobs report that could give clarity on the Fed’s interest rate trajectory.
South Korea’s won led the decline among currencies, dropping 0.9 per cent to 1,324.70 per dollar. The unit was set to drop for a third successive session. The Indonesian rupiah slid 0.3 per cent.
The USD/KRW pair is trading towards 1,320, with KRW strength dampened by a softer RMB and a marked drop in Korea’s inflation, DBS analysts said in a note.
Core inflation is not falling that quickly, easing slightly for November, which could underpin Bank Of Korea’s decision to hold rates for a longer period, supporting the KRW, the analysts said.
The dollar index, which measures the strength of the greenback against six major peers, was at 104.18 at 0355 GMT.
Investors also digested mixed economic data from China, the world’s second largest economy, which showed an increase in exports while imports dropped steeply, suggesting that domestic demand was still subdued.
Chinese stocks dropped 0.3 per cent, while the yuan traded flat.
Other currencies such as the Singapore dollar dropped for the fourth successive session, while the Malaysian ringgit and Taiwan dollar traded 0.2 per cent down.
Thailand’s baht and stocks were down 0.2 per cent and 1 per cent, respectively, after Southeast Asia’s second-biggest economy reported its November inflation print at its lowest in around three years.
Among Asian equities, stocks in Singapore dropped 1.1 per cent to a near five-week low, while equities in Taiwan, Philippines and Malaysia slid between 0.2 per cent and 0.6 per cent.
