Dollar strength weighs on Asian FX; AI stocks extend gains
TLT•Asian currencies weakened as the dollar firmed and US Treasury yields rose, while South Korean and Taiwanese stocks extended gains. The ringgit fell to a one-week low of 4.073 per dollar, and the rupiah weakened to 18,150 per dollar.
1. Currencies weaken
Asian currencies fell as the dollar hovered near a two-week high following US core inflation data showing a 0.3% monthly rise in October. Higher US yields and expectations for further rate hikes weighed on the currencies; the Thai baht lost 0.5%, and the Malaysian ringgit weakened to 4.073 per dollar, its lowest level in a week.
2. Technology stocks rise
South Korean and Taiwanese technology-heavy markets extended their recovery from last week's selloff. South Korea's KOSPI rose 1.6% and Taiwan's market gained 2.08%, with strong earnings from CoreWeave helping reassure investors about AI infrastructure demand. Indonesia's rupiah weakened to 18,150 per dollar as investors awaited MSCI's November index review.
