April,18(Agencies)—— Asian currencies were weaker on Tuesday even as China’s economy grew at a faster-than-expected pace in the first quarter, while Indonesia’s rupiah depreciated ahead of an interest rate decision by its central bank.
China’s economy expanded at an annual rate of 4.5% in the first quarter, outpacing an expected 4.0% growth, as the end of strict COVID-19 curbs lifted businesses and consumers.
Separate data on March activity showed China’s retail sales growth beat expectations and hit a near two-year high, while factory output growth also sped up.
Investors have been closely watching first quarter data for clues on the strength of the recovery after Beijing abandoned its zero-COVID policy in December and eased a three-year crackdown on tech firms and property.
Markets in Asia, however, remained largely weaker. Shares in Shanghai were flat, while equities in Singapore, Manila and Bangkok slipped between 0.5% and 0.6%.
In currency markets, Malaysia’s ringgit, the Philippine peso and South Korean won fell against the dollar, while China’s yuan was up 0.1%.
“The (China) data was certainly stronger than expected, but there are still question marks on whether the growth momentum can be sustained,” said Mitul Kotecha, head of emerging markets strategy at TD Securities.
The dollar eased after rallying overnight as strong US economic data reinforced expectations that the Federal Reserve would hike interest rates again in May.
Pakistan Rupee Exchange Rate