Asian currencies tumble as projected Trump win propels dollar

Reuters

Asian currencies tumble as projected Trump win propels dollar

6. Nov. 2024 um 8:03 vorm. GMT

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Singapore dollar hits 3-month-low

Malaysia c.bank holds key rate; ringgit down 1.5%

Thai baht posts worst intraday drop since Feb 2023

Updates at 0721 GMT

By Himanshi Akhand

Nov 6 (Reuters) -Singapore's dollar and Thailand's baht slid themost among Asian currencies on Wednesday, whilethe Mexican peso hit a two-year low as the dollar surged on projections that Republican Donald Trump had won the U.S. presidential election.

The Singapore dollar SGD= was last down 1.3% at a three-month low and set for its worst session since August 2015.

Thailand's baht THB=TH slumped as much as 1.9% to a two-month low, in its biggest one-day drop since February 2023.

The dollar was set for its biggest daily rise since March 2020 against major peers, and U.S. Treasury yields also soared to multi-month peaks. FRX/ US/

Fox News projected that Trump has won the U.S. presidency defeating Democrat Kamala Harris, and Republicans took control of at least one chamber of Congress. Other media outlets were yet to call the race.

Analysts view Trump's proposed tariff and immigration policies as inflationary, and are therefore likely to put upward pressure on prices, bond yields and the dollar, and undermine the currencies of trading partners.

"The market is making positioning adjustments to prepare for a possible Trump victory," said Ken Cheung Kin Tai, chief Asian FX strategist at Mizuho Bank.

"Regional investors are particularly worried about the impact from tariffs because most Asian economies rely on trade growth."

The Chinese yuan and Mexican peso are seen as the most vulnerable to a stronger dollar and heavier tariffs under Trump.

The yuan CNY=CFXS was last down 0.8%, while the peso MXN= dropped as low as 20.7080 for the first time since August 2022.

MUFG analysts feel a Trump win would hit the South Korean won, Singapore dollar, Thai baht and Malaysian ringgit harder than other Asian currencies because of their export orientation and sensitivity to a potential slowdown in China's growth.

The ringgit MYR=, Southeast Asia's best-performingcurrency this year, was last down 1.5%.

Malaysia's central bank kept interest rate unchanged, as expected, and said it was monitoring the U.S. election and was prepared to manage market volatility and ensure orderly market conditions.

The Indonesian rupiah IDR= fell 0.7% to a nearly three-month low. The central bank governor said the short-term focus was on the rupiah's stability amid the U.S. election outcome.

An official said the central bank was also ready to stabilise the rupiah, including via steps such as intervention, if there was excessive volatility.

Regional stock markets were mixed, with equities in Manila .PSI down 1.2%, while those in Taipei .TWII rose 0.5% and Mumbai .NSEI gained 0.9%.

HIGHLIGHTS:

** Thai headline CPI rises 0.83% y/y in Oct, below forecast

** Philippines posts widest trade gap in 20 months

Asian stock indexes and currencies as at 0721 GMT
COUNTRY	FX RIC	FX DAILY %	FX YTD %	INDEX	STOCKS DAILY %	STOCKS YTD %
Japan	JPY=	-1.52	-8.37	.N225	2.61	17.98
China	CNY=CFXS	-0.82	-0.93	.SSEC	-0.09	13.74
India	INR=IN	-0.16	-1.23	.NSEI	0.92	12.45
Indonesia	IDR=	-0.73	-2.84	.JKSE	-1.07	1.91
Malaysia	MYR=	-1.48	+4.20	.KLSE	0.37	11.82
Philippines	PHP=	-0.39	-5.66	.PSI	-1.27	11.09
S.Korea	KRW=KFTC	-1.27	-7.81	.KS11	-0.52	-3.46
Singapore	SGD=	-1.33	-0.91	.STI	0.32	10.88
Taiwan	TWD=TP	-0.72	-4.55	.TWII	0.48	29.48
Thailand	THB=TH	-1.63	+0.18	.SETI	0.10	4.75