Asian FX pressured by strong dollar; ringgit, rupiah lead declines
.
Malaysian ringgit at near 6-week low
Stocks largely down, tracking Wall Street
Resurgent U.S. dollar hurt Asian FX
By Adwitiya Srivastava and Roushni Nair
Oct 22 (Reuters) - Most emergingAsian currencies retreated on Tuesday, with the Indonesian rupiah and the Malaysian ringgit leading declines, pressured by a resurgent U.S. dollar as investors assessed the possible outcome of the U.S. election.
The ringgit MYR= fell as much as 0.6% to 4.325 per dollar, its lowest level since Sept. 13, while the rupiah IDR= slipped as much as 0.5%.
Indonesia's new president Prabowo Subianto officially swore in his cabinet on Monday, which included the reappointment of the country's highly-regarded Finance Minister Sri Mulyani Indrawati.
"There is no better Finance Minister to convince investors that fiscal discipline would be maintained within a new deficit ceiling, with the additional spending room allocated towards productive means," analysts at Maybank wrote.
The Philippine peso PHP= and Taiwanese dollar TWD= declined 0.4% and 0.3%, respectively.
Meanwhile, the dollar index =USD was last at 103.93 in Asian hours, after hitting its highest level of 104.02 since Aug. 1 on Monday.
Upbeat U.S. economic data and election polls favoring former President Trump have strengthened the dollar, signaling potentially higher interest rates for a longer duration.
As the odds of a Trump victory increase, there are indications that the 'Trump trade' has commenced in global financial markets, with negative short-term implications for emerging markets, analysts at BCA Research wrote.
"In short, the U.S. dollar will strengthen, and U.S. bond yields will rise in the lead-up to and after the election if Trump wins. In response, EM countries' currencies will depreciate, and their fixed-income and equity markets will suffer over the coming months."
In Asia, interest rates have been the main theme with a slew of central banks announcing their monetary policies in the recent weeks, mostly in line with market expectations.
The Philippine central bank reduced its key interest rate by 25 basis points last week, while Bank Indonesia kept rates unchanged. The Bank of Thailand, however, delivered a surprise 25 bps rate cut, but indicated it was not the beginning of an easing cycle.
Investors are now awaiting the monetary policy statement from Bank Negara Malaysia on Nov. 6 for its outlook on rates.
Stocks in the region were largely down, in line with overnight declines on Wall Street. South Korean stocks .KS11 dropped about 1.3%, while Thailand's equities .SETI fell 0.4%.
Investors now look ahead to key inflation data from Singapore and Malaysia later in the week.
HIGHLIGHTS:
** China's youth unemployment rate falls after climbing for two straight months
** Vietnam parliament elects army general as state president
Asian stocks and currencies as at 0659 GMT | ||||||
COUNTRY | FX RIC | FX DAILY % | FX YTD % | INDEX | STOCKS DAILY % | STOCKS YTD % |
Japan | JPY= | +0.00 | -6.48 | .N225 | -1.39 | 15.39 |
China | CNY=CFXS | -0.01 | -0.34 | .SSEC | 0.29 | 10.18 |
India | INR=IN | +0.01 | -1.02 | .NSEI | -0.46 | 13.51 |
Indonesia | IDR= | -0.35 | -0.96 | .JKSE | 0.06 | 6.93 |
Malaysia | MYR= | -0.46 | +6.25 | .KLSE | -0.03 | 13.10 |
Philippines | PHP= | -0.36 | -4.27 | .PSI | 0.01 | 14.84 |
S.Korea | KRW=KFTC | -0.09 | -6.67 | .KS11 | -1.31 | -3.19 |
Singapore | SGD= | +0.07 | +0.29 | .STI | -0.38 | 11.13 |
Taiwan | TWD=TP | -0.28 | -4.17 | .TWII | -0.03 | 31.26 |
Thailand | THB=TH | -0.09 | +1.95 | .SETI | -0.44 | 4.69 |
Reporting by Adwitiya Srivastava in Bengaluru; Editing by Lincoln Feast and Varun H K
Mga Kaugnay na Asset
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
