Most Asian currencies rise as dollar eases, Singapore hits 3-week high

0
14

Article content

Most Asian currencies gained on Thursday,

after the U.S. dollar eased, with the Singaporean dollar hitting

a three-week high after its central bank unexpectedly tightened

its policy.

South Korean won and the Thai baht were among the top

percentage gainers in the region, strengthening about half a

percent each.

Singapore’s dollar firmed as much 0.3% to touch its

highest since Sept. 24, after the Monetary Authority of

Singapore tightened its policy for the first time since October

Advertisement

Article content

2018 as the threat of inflation outweighed growth risks posed by

the coronavirus.

Among equities, Indonesia jumped 1.4% to scale an

over two-year level, Philippines advanced more than 1%

after two straight days of losses. India’s Nifty 50

scaled a fresh peak with technology stocks powering the gains.

The U.S. dollar index touched its lowest this week at

93.987 against major peers on Thursday taking a breather from a

rally that had lifted it to a one-year high powered by

expectations for quicker Federal Reserve interest rate hikes.

“The release of the Fed minutes has reaffirmed expectations

that tapering may begin towards the end of the year in ‘either

mid-November or mid-December’,” said Yeap Jun Rong, a market

Advertisement

Article content

strategist at IG.

In Asia, South Korea’s won gained 0.6% and marked

its best day since late-August, after the finance minister said

the government was ready to deploy measures to stabilize

currency markets if needed. The won has lost more than 5% since

July.

“Whilst recovery thus far has fallen short of levels

consistent with past Singapore dollar slope reinstatement, a

backdrop of growing inflation risks in quarters ahead, alongside

an adequate recovery, incentivise pre-emptive normalization,”

analysts at Mizuho Bank said in a note.

Among other currencies, the Thai baht added 0.5% to

scale a three-week high.

Indonesia’s rupiah touched a five-month high after

the holiday island of Bali reopened to foreign tourists after 18

Advertisement

Article content

months of a pandemic hiatus.

The country, Southeast Asia’s biggest economy and a thermal

coal exporter, is likely to have logged a growth in September

exports supported by high commodity prices, while trade surplus

is seen narrowing due to rising imports, a Reuters poll showed.

Meanwhile, China’s yuan pulled back from a nearly

four-month high after the central bank set the currency’s daily

fixing weaker than expected, with high producer inflation

reading for September adding to policy anxiety.

HIGHLIGHTS:

** Indonesian 10-year benchmark yields fall 5.5 basis points

to 6.291%

** China’s factory gate inflation hits record high in

September –

** Thai economy bottomed out in Q3 -c.bank minutes –

Asia stock indexes and

currencies at 0639 GMT

COUNTRY FX RIC FX FX INDE STOCK STOCK

DAILY YTD X S S YTD

% % DAILY %

%

Japan -0.27 -9.0 <.n2>

China 1 EC>

India +0.09 -2.9 <.ns ei>

Indones +0.49 -0.7 <.jk ia se>

Malaysi +0.12 -3.2 <.kl a se>

Philipp -0.12 -5.1 <.ps ines i>

S.Korea 8 11>

Singapo +0.18 -2.1 <.st re i>

Taiwan +0.09 +1.2 <.tw ii>

Thailan +0.48 -9.7 <.se d ti>

(Reporting by Sameer Manekar in Bengaluru; Editing by Amy Caren

Daniel)

Advertisement

Comments

Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.