World Finance News - Dollar retreats against emerging currencies

Dollar retreats against emerging currencies

Dollar retreats against emerging currencies

Tokyo - The US dollar fell against emerging market currencies in Asia on Wednesday as worries over China's economy faded and investors awaited fresh input from the Federal Reserve on its timeline for an interest rate hike.

The Malaysian ringgit and the Indonesian rupiah booked solid gains against the greenback as a commodity price recovery pushed equity markets into positive territory.

The South Korean won, the Taiwan and Singapore dollars and the Thai baht were also up against the US currency.

But the dollar gained against Japan's currency, rising to ¥121.19 from ¥121.03 on Tuesday in New York.

Expectations remain that the Japanese central bank may need to increase its bond-buying programme to further stimulate the country's slumping economic growth and weak consumer prices.

The euro, meanwhile, dropped to $1.0948 from $1.0959 but showed continued strength against the yen, edging up to ¥132.68 from ¥132.64.

High-yield, riskier assets have taken a big hit this year on fears of a flight of capital back to the United States as traders look for better, safer investments.

But the dollar suffered a heavy sell-off against emerging currencies in October, as concerns about the world's top economy boosted the argument the Fed would delay a rate hike until 2016.