Thai baht, Indonesian rupiah lead Asian currencies higher

BENGALURU: Most Asian currencies firmed on Tuesday, with the Thai baht and Indonesian rupiah leading the pack, as the U.S. dollar remained under pressure from waning conviction about any immediate U.S. Federal Reserve stimulus tapering.

The baht extended its gains into a third consecutive session, appreciating as much as 0.4% to hit a near two-month high, while the Indonesian rupiah rose for a second day to scale a near one-month high.

The U.S. dollar index hovered near its two-week lows against a basket of currencies, stabilising from falls after Powell’s speech last week that offered no clear signs on the central bank’s plan to cut its asset purchases.

“Asian currencies may be in a good position this week, with risk environment leaning broadly risk-on, and the market still digesting Powell’s…