BANGKOK: Most Asian currencies advanced on Wednesday as markets remained on edge over the deepening Ukraine crisis and looming U.S. rate hikes in March, with the Indian rupee leading the pack on weaker oil prices.
The energy-sensitive rupee jumped 0.4%, supported by a pullback in oil prices as it became clear the first wave of U.S. and European sanctions on Russia for sending troops into eastern Ukraine would not disrupt oil supplies.
“The next couple of sessions may be key - should the FX space remain largely unperturbed alongside worsening headlines; it may suggest that the market is ready to look past the issue,” OCBC Bank said in a note, referring to the Ukraine crisis.
Should the FX space look past the Russia-Ukraine conflict, expect it to revert back to central bank dynamics, it said.
The Indonesian rupiah and the Philippine peso gained 0.1% and 0.2% respectively, while the Thai baht reversed losses to rise 0.2%.
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