China’s foreign exchange reserves reached $3.198t in April
According to Friday’s official data, China’s foreign exchange reserves rose to $3.198 trillion in April from a month earlier, as the U.S. dollar broadly declined during the month.
The country’s foreign exchange reserves, the world’s largest, increased by $28.15 billion to $3.198 trillion last month.Notably, Reuters polls of analysts anticipated $3.2 trillion in April and $3.17 trillion in March.
The yuan grew 1.2% against the dollar in April, while the dollar dropped 2.1% versus a basket of other major currencies.
Asian currencies boosted against the dollar
Asian currencies increased against the dollar ahead of key U.S. jobs data on Friday. The Indonesian rupiah reached a two-month high, while stocks received a boost from China’s upbeat economic report.
The rupiah increased by 0.5% and was headed for its best week since November 2020.
Furthermore, outflows, dividend repatriation pressure, and concerns about bank Indonesia’s autonomy had seen the rupiah fall in 2021. Still, it recently found favor among yield-seekers as the Federal Reserve announced a dovish stance.
The yields on Indonesia’s benchmark 10-year bonds declined by 43.6 basis points from March highs. Furthermore, yields dropped 2 basis points to 6.435%.
According to OCBC analysts, near-term supply on the lighter side and the economic risk due to a resurgence in coronavirus infections could support Indonesia bonds.
The South Korean won had its best day in a week, while the Malaysian ringgit, Taiwan’s dollar, and the Singapore dollar firmed between 0.1% and 0.4% as the dollar declined.
Friday’s U.S. payroll data will likely confirm the economy’s solid path to rebound from the pandemic. It could potentially stoke inflation worries. However, the Federal Reserve has downplayed the risks of higher rates.
Besides, Thailand and Taiwan shares gained about 1% each, while Singapore’s bourse surged 0.8%. Singapore’s bourse raise came after China’s surprise export surge, and solid services data for April cemented hopes of continuing economic recovery in the region’s top trade partner