Indonesian rupiah leads gains among Asian currencies; stocks down
Asian currencies appreciated against
the dollar on Friday as marginal weakness in the U.S. dollar
powered gains across the region, with the Indonesian rupiah
leading the pack on potential further rate hikes to control
The rupiah extended gains into a third session to
appreciate almost 1%, eyeing its best week since November 2020,
after inflation data on Thursday showed some signs of cooling
but stayed above the central bank’s target range of 2% to 4%.
Stocks in Jakarta lost 0.5%, tracking their worst
week since mid-October.
To tame inflation, which is near its highest rate in seven
years, Bank Indonesia has lifted interest rates by a total of
175 basis points (bps) this year, stating that further moderate
rate hikes will be needed to bring it under control.
“We keep our forecast for BI to continue hiking (interest
rates) to reach its terminal level of 6% in the first quarter of
2023,” said Enrico Tanuwidjaja, an economist at UOB.
Elsewhere, the Singapore dollar and South Korean won
appreciated 0.12% each, adding over 1.6% and 0.6%
this week, respectively.
Malaysian ringgit firmed 0.2% on Friday, marking its
fourth straight week of gains, while stocks in Kuala Lumpur
gave up 0.6%, losing 0.3% in value this week.
Philippine’s peso jumped 0.5% to mark its fifth
straight day of gains, while stocks led losses across
Asia with a 1.9% decline.
The sharp moves come after the country’s central bank
governor said it will hike interest rates this month, with the
monetary board likely split between a 25 and 50 bps adjustment.
The Bangko Sentral ng Pilipinas is slated to meet on Dec. 15.
Meanwhile, the International Monetary Fund flagged rising
inflationary pressures and China’s economic slowdown as risks to
Asia’s economic outlook, stating that aggressive tightening of
U.S. monetary policy may trigger abrupt reversals of capital
flows or sharp currency depreciation.
Stocks across Asia were subdued ahead of the U.S. non-farm
payroll data for any more clues on the Federal Reserve’s rate
outlook. Stocks in South Korea and Singapore lost
1.4% and 0.7%, respectively.
** Indonesian 10-year benchmark yields falls 0.9 basis
points to 6.847%
** South Korea Nov inflation slows to 5.0%, lowest in 7
** The dollar index up 0.191% at 104.840 vs
Thursday’s low of 104.56
Asia stock indexes and currencies at
COUNTRY FX RIC FX FX INDEX STOCKS STOCKS
DAILY % YTD % DAILY YTD %
Japan +0.10 -14.8 -1.83 -3.76
China +0.01 -9.92 -0.34 -13.33
India +0.09 -8.40 -0.52 7.84
Indonesia +0.78 -7.71 -0.51 6.13
Malaysia +0.18 -5.19 -0.63 -3.61
Philippine +0.50 -8.87 -1.89 -7.23
S.Korea +0.03 -8.52 -1.41 -17.89
Singapore +0.06 -0.26 -0.73 4.64
Taiwan +0.17 -9.50 -0.31 -17.85
Thailand -0.01 -3.98 -0.37 -0.92
(Reporting by Roushni Nair in Bengaluru; Editing by Kim
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