© Reuters.
By Ambar Warrick
Investing.com — The Chinese yuan rose sharply on Wednesday as stronger-than-expected business activity data ramped up bets of an economic recovery in the country, helping most other China-exposed currencies gain for the day.
The rose 0.4%, moving further away from its lowest level this year as China’s hit its highest level in over a decade, supported by stronger-than-expected growth in both and activity.
The jumped 0.5% against the dollar, as the data indicated that an economic recovery in China gained momentum over the past month after the country relaxed most anti-COVID measures in January.
A recovery in China bodes well for broader Asian economies that trade with the country, with gains in the yuan spilling over into most other regional currencies with high trade exposure to the country.
The rose 0.3%, while the jumped 0.5% in holiday-thinned trade. The rose 0.3% even as data showed the country’s slowed drastically in the fourth quarter, amid pressure from elevated inflation and interest rates.
also grew less than expected in January.
The led gains across Southeast Asian currencies with a 0.8% bounce, while the added 0.6%.
Still, most Asian currencies were nursing steep losses for February, as concerns over rising and a hawkish Federal Reserve persisted. stuck to a near two-month high against a basket of currencies, after advancing sharply in February.
The and were muted on Wednesday, after logging small overnight losses on weaker-than-expected economic readings.
Focus this week is largely on for February, due on Wednesday and Friday. Any signs of resilience in the U.S. economy give the Fed more economic headroom to keep raising interest rates, which is negative for Asian markets.
Regional economic indicators were also in focus this week. The fell 0.1%, sticking close to its weakest level this year after data showed the country’s remained in contraction through February.
The rose 0.1%, as data showed that the country’s in 2022, much faster than most of its Asian peers. But for the fourth quarter also slightly missed expectations.
