SINGAPORE, Jan 18 — Most Asian currencies weakened today, with the dollar gaining after European Central Bank officials voiced concerns about euro strength and Apple Inc said it planned to repatriate billions of dollars to the United States.
The dollar index against a basket of six major currencies was up 0.3 per cent at 90.840, getting some respite after slipping to three-year lows.
The euro nursed losses today, after slipping overnight on ECB policymaker Ewald Nowotny’s comments the euro’s recent strength against the dollar is “not helpful”.
Apple said it would open a new campus as part of a five-year, US$30 billion (RM118.75 billion) US investment plan and would make about US$38 billion in one-time tax payments on its overseas cash, one of the largest corporate spending plans announced since the passage of a tax cut signed by US President Donald Trump.
“Repatriated earnings from overseas to the US should lend a boost to the dollar, but the jolt is likely to be a one-off factor amid a broader downtrend,” a Maybank report said today.
Sean Yokota, head of Asia strategy at Skandinaviska Enskilda Banken, said investors were taking profits in Asian currencies after their strong gains against the dollar this year and expected this trend to continue over the next month.
The Malaysian ringgit, this year’s biggest gainer against the dollar in the region, fell 0.1 per cent on the day.
The South Korean won also declined after its central bank kept interest rates unchanged today. The central bank upgraded its 2018 growth forecast but flagged concerns about economic uncertainties and soft inflation, which remain hurdles to policy tightening this year.
China’s yuan eased after the central bank set lower guidance for the first time in six trading days.
Bucking the trend, the Thai baht edged up, bolstered by foreign buying.
Exchange data showed foreigners bought about US$70 million in Thai equities and US$338 million in its debt markets yesterday.
Investors were awaiting the release of China’s fourth-quarter and 2017 gross domestic product data, and also December factor output, retail sales and fixed-asset investment data at 7am. — Reuters
