Asia FX mixed as markets mull future Fed rate stance
Emerging Asian currencies were mixed
on Monday and several regional stock markets eased after sharp
gains in the previous session, as investors weighed the
likelihood of the U.S. Federal Reserve softening its hawkish
The Indonesian rupiah, Philippine peso and
South Korean won lost between 0.2% and 0.6%, while
the Singapore dollar also inched lower.
The U.S. dollar steadied after Federal Reserve Gov.
Christopher Waller said on Sunday the bank was not softening its
fight against inflation, which made some investors think that
the steep sell-off last week was probably overdone.
Still, Malaysia’s ringgit outperformed its peers
to rise 0.9%, adding to Friday’s 1.6% surge that came after data
showed the Malaysian economy had expanded at its fastest pace in
more than a year in the third quarter.
Thailand’s baht was also an outlier, gaining 0.4%,
as the Bank of Thailand (BoT) said monetary policy would be
“measured and gradual” to support economic recovery, but that it
was ready to adjust those settings if necessary.
“I do agree on the BoT stance … considering the economy,
which has not fully recovered yet compared to pre-COVID-19
level,” said Kittika Boonsrang, capital markets business
research specialist at Kasikornbank.
“BOT may not need to rush as the wind is changing its
direction, with rising concern on over-tightening as inflation
is falling back under control.”
Meanwhile, in China, the yuan hit a near
two-month high and stocks jumped 0.8% on the
government’s decision to ease some COVID-19 restrictions and as
regulators outlined an aggressive plan to shore up liquidity in
the property sector.
Regional share markets were mixed, after a rally on Friday
in the aftermath of softer-than-expected U.S. inflation data.
While equities in Singapore and the Philippines
gained over a percent, stocks in Indonesia,
Malaysia and Thailand skidded between 0.4% and
Indonesia’s trade surplus is seen narrowing slightly in
October to $4.5 billion amid weakening in global trade and
moderating commodity prices, a Reuters poll showed.
** India’s Oct inflation seen falling below 7% – central
** Indonesian 10-year benchmark yields are down 10.2 basis
points at 7.101%
** Singapore’s 10-year benchmark yield is up 2.3 basis
points at 3.376%
Asia stock indexes and currencies
at 0633 GMT
COUNTRY FX RIC FX FX INDEX STOCKS STOCKS
DAILY % YTD % DAILY YTD %
Japan -0.38 -17.4 -1.06 -2.88
China +0.56 -9.91 -0.08 -15.25
India -0.52 -8.48 -0.07 5.66
Indonesi -0.23 -8.21 -0.65 7.02
Malaysia +0.87 -9.18 -0.43 -6.74
Philippi -0.31 -11.1 1.11 -10.76
S.Korea -0.57 -10.3 -0.34 -16.89
Singapor -0.13 -1.77 1.29 4.68
Taiwan +1.16 -10.8 1.19 -22.20
Thailand +0.39 -6.65 -0.87 -2.09
(Reporting by Navya Mittal; Editing by Savio D’Souza)
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