LONDON: The dollar weakened against emerging currencies on Monday as growth in China’s economy in the third quarter slowed to the weakest pace since the global financial crisis but still beat analysts’ expectations.
The South Korean won, the Australian dollar and the Singapore dollar rose after the data from Beijing gave a lift to confidence, while expectations the Federal Reserve will delay an interest rate hike also provided support.
Global markets have rallied in October – following a massive sell-off in the July-September quarter – with emerging currencies the main beneficiaries as bets on a 2015 rise in US borrowing costs recede.
After saying in early 2015 that a rise was expected as the US economy picked up pace, bank policymakers have gradually lowered their expectations, with turmoil unleashed by China’s yuan depreciation in August playing a major role.
