Philippine peso eases ahead of likely rate hike; Fed minutes awaited
Asian currencies held steady on Wednesday
as investors awaited the U.S. Federal Reserve’s minutes from its
recent meeting to get a sense of its stance on rates, while the
Philippine peso slipped ahead of the central bank’s policy
South Korea’s won was the top loser in the
region, depreciating as much as 0.2%, while the Philippine peso
Bangko Sentral ng Pilipinas (BSP) is expected to follow its
July surprise rate hike with a half-point rise on Thursday and
another quarter-point hike next month to catch up with its peers
in containing soaring inflation, a Reuters poll showed.
Analysts at ING, DBS, OCBC and Mizuho Bank expect a 50 bp
hike to its key overnight borrowing rate to contain inflation
which is hovering near four-year highs.
BSP Governor Felipe Medalla said in a forum on Wednesday the
central bank was “ready to take the necessary policy actions” to
combat inflation, and added that current policy settings remain
supportive of economic growth.
The U.S. dollar index, which measures the greenback
against six major peers, slipped marginally in Asia trading
hours ahead of the Fed minutes and U.S. retail sales for July.
“Should the Minutes indicate a greater shift towards a
data-dependent approach with more concerns of recession risks,
markets may perceive the committee to be less hawkish and U.S.
dollar could ease further,” analysts at Maybank said in a note.
Meanwhile, data from Singapore showed non-oil domestic
exports grew more-than-expected in July, but the pace of
expansion was slower than last month’s. The Singapore dollar
remained flat, while stocks advanced 0.3%.
The Thai baht fell marginally, but had trimmed
losses from earlier in the week on expectations that the economy
would continue to grow in the second half of the year as tourism
Among regional stock markets, Thailand, Malaysia
, and the Philippines advanced between 0.3% and
0.5%, while South Korea declined 0.6%.
Markets in Indonesia were closed on account
of a public holiday.
** India 10-year benchmark yields fall 7.6 basis points to
** Indonesia president proposes $206 bln budget for 2023
** Japan trade gap widens in July as imports surge
COUNTRY FX FX FX INDEX STOCKS STOCKS
RIC DAILY % YTD % DAILY % YTD %
Japan +0.07 -14.20 0.90 1.17
China +0.12 -6.28 0.28 -9.69
India +0.42 -6.29 0.24 2.96
Indonesia – -3.49 – 8.39
Malaysia 0.00 -6.72 0.33 -0.89
Philippines -0.04 -8.65 0.42 -3.41
S.Korea -0.21 -9.32 -0.62 -15.44
Singapore -0.06 -2.19 0.33 4.51
Taiwan -0.01 -7.74 0.07 -15.30
Thailand -0.13 -5.72 0.46 -1.22
(Reporting by Sameer Manekar in Bengaluru; Editing by