Asian currencies extend losses on US election bets; rupiah, ringgit lead declines
Indonesian rupiah falls 0.4%
Malaysia inflation due on Thursday
Philippine suspends currency trading due to Tropical Storm Trami
By Rajasik Mukherjee and Ayushman Ojha
Oct 23 (Reuters) -Asian currencies extended losses on Wednesday, led by the Indonesian rupiah and Malaysian ringgit as the dollar continued to strengthen on bets Donald Trump would win the U.S. presidential election, while stocks in the region were mixed.
Rising odds of Republican candidate Trump winning the Nov. 5 election have been pushing the dollar higher, while diminishing expectations for aggressive interest rate cuts by the U.S. Federal Reserve have also supported the greenback.
Malaysia's ringgit MYR=, the best performing currency in the region, shed as much as 0.4%, hitting over a one-month low.
The Indonesian rupiah IDR= lost 0.4%, while the Singapore dollar SGD= and Taiwan dollar TWD= traded largely unchanged.
"If he (Trump) reiterates that he will be imposing prohibitive tariffs on Asia, then I think market expectations for higher tariffs will certainly continue to weigh on Asian currencies throughout the quarter and even going into early next year," said Lloyd Chan, senior currency analyst at MUFG Bank.
In the forex markets, trading was thin as markets in Thailand were closed for a holiday while the Philippine central bank on Wednesday suspended currency trading and monetary operations for the day due to Tropical Storm Trami.
Stocks in the Asian emerging markets struggled for direction, as investors weighed the risks of U.S. election results.
South Korean stocks .KS11 gained 1.2% boosted by chip and auto makers, while shares in Taiwan .TWII lost 0.7%.
Indonesian stocks .JKSE edged lower while stocks in Malaysia .KLSE traded flat.
Traders will be watching out for Malaysia's inflation report due on Thursday to gauge the central bank's monetary policy. Data on Wednesday showed Singapore's key consumer price gauge rose more than economists' forecasts.
Singapore stocks .STI were up 0.5%, while stocks in Manila .PSI fell 0.8%.
Last week, the Philippine central bank reduced its key interest rate, while Bank Indonesia kept rates unchanged. Bank of Thailand, surprised markets with cut but indicated it was not the beginning of an easing cycle.
"Inflation in Asia has been less of a worry compared to some of the advanced economies in the U.S. and Europe, so what has been a constraint for Asian central banks (from cutting rates) is the weakness that we have been seeing in their currencies over the past several years," Chan said.
"So for now central banks in the region will want to wait and see the U.S. election outcomes before deciding to take the next move."
HIGHLIGHTS:
** Israel confirms death of heir apparent to slain Hezbollah leader
** China think tank proposes $280 bln stock market stabilisation fund
** IMF cuts Japan's growth forecast, projects rebound in 2025
Asian stocks and currencies as at 0426 GMT | ||||||
COUNTRY | FX RIC | FX DAILY % | FX YTD % | INDEX | STOCKS DAILY % | STOCKS YTD % |
Japan | JPY= | -0.57 | -7.15 | .N225 | -0.90 | 13.76 |
China | CNY=CFXS | -0.05 | -0.42 | .SSEC | 0.79 | 11.33 |
India | INR=IN | +0.01 | -1.02 | .NSEI | -0.23 | 12.35 |
Indonesia | IDR= | -0.35 | -1.38 | .JKSE | -0.14 | 6.95 |
Malaysia | MYR= | -0.30 | +5.81 | .KLSE | 0.05 | 12.98 |
Philippines | PHP= | - | -4.32 | .PSI | -0.80 | 14.01 |
S.Korea | KRW=KFTC | -0.14 | -6.77 | .KS11 | 1.17 | -2.05 |
Singapore | SGD= | -0.08 | +0.14 | .STI | 0.45 | 11.21 |
Taiwan | TWD=TP | -0.02 | -4.15 | .TWII | -0.71 | 30.32 |
Thailand | THB=TH | - | +2.00 | .SETI | - | 3.85 |
Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
Asian stock markets https://tmsnrt.rs/2zpUAr4
Reporting by Rajasik Mukherjee & Ayushman Ojha in Bengaluru; Editing by Sonali Paul
Actifs liés
Dernières actualités
Avertissement : Les entités de XM Group proposent à notre plateforme de trading en ligne un service d'exécution uniquement, autorisant une personne à consulter et/ou à utiliser le contenu disponible sur ou via le site internet, qui n'a pas pour but de modifier ou d'élargir cette situation. De tels accès et utilisation sont toujours soumis aux : (i) Conditions générales ; (ii) Avertissements sur les risques et (iii) Avertissement complet. Un tel contenu n'est par conséquent fourni que pour information générale. En particulier, sachez que les contenus de notre plateforme de trading en ligne ne sont ni une sollicitation ni une offre de participation à toute transaction sur les marchés financiers. Le trading sur les marchés financiers implique un niveau significatif de risques pour votre capital.
Tout le matériel publié dans notre Centre de trading en ligne est destiné à des fins de formation / d'information uniquement et ne contient pas – et ne doit pas être considéré comme contenant – des conseils et recommandations en matière de finance, de fiscalité des investissements ou de trading, ou un enregistrement de nos prix de trading ou une offre, une sollicitation, une transaction à propos de tout instrument financier ou bien des promotions financières non sollicitées à votre égard.
Tout contenu tiers, de même que le contenu préparé par XM, tels que les opinions, actualités, études, analyses, prix, autres informations ou liens vers des sites tiers contenus sur ce site internet sont fournis "tels quels", comme commentaires généraux sur le marché et ne constituent pas des conseils en investissement. Dans la mesure où tout contenu est considéré comme de la recherche en investissement, vous devez noter et accepter que le contenu n'a pas été conçu ni préparé conformément aux exigences légales visant à promouvoir l'indépendance de la recherche en investissement et, en tant que tel, il serait considéré comme une communication marketing selon les lois et réglementations applicables. Veuillez vous assurer que vous avez lu et compris notre Avis sur la recherche en investissement non indépendante et notre avertissement sur les risques concernant les informations susdites, qui peuvent consultés ici.
