Asian FX pressured by dollar strength; 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) -Asian currencies retreated on Tuesday, with the Indonesian rupiah and the Malaysian ringgit leading the decline, pressured by a resurgent U.S. dollar as investors anticipate a cautious approach on future rate cuts by the Federal Reserve.
The ringgit MYR= fell as much as 0.6% to 4.325 per U.S. dollar, its lowest level since Sept. 13. The rupiah IDR= followed suit to slip as much as 0.5%, hitting its lowest level since Oct. 15.
Among other currencies, the Philippine peso PHP= and Taiwanese dollar TWD= declined 0.3% and 0.2%, respectively.
Indonesia's newly minted leader, President Prabowo Subianto officially swore in his cabinet on Monday, including 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.
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.
The dollar index =USD which measures the U.S. currency versus six rivals was last at 103.96 in Asian hours, having touched its highest level of 104.02 since Aug. 1 on Monday.
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 central theme with a slew of central banks announcingtheir monetary policies in the recent past, 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. Bank of Thailand, however, surprised markets with a 25-basis-point 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 (BNM) 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 over 1%, while Taiwanese shares .TWII and Thailand's equities .SETI fell 0.4% and 0.3%, respectively.
Investors now look ahead to key inflation data from Singapore and Malaysia laterin the week.
HIGHLIGHTS:
** India, China reach pact to resolve border conflict, Indian foreign minister says
** Vietnam parliament elects army general as state president
Asian stocks and currencies as at 0330 GMT | ||||||
COUNTRY | FX RIC | FX DAILY % | FX YTD % | INDEX | STOCKS DAILY % | STOCKS YTD % |
Japan | JPY= | -0.09 | -6.56 | .N225 | -1.43 | 15.35 |
China | CNY=CFXS | -0.06 | -0.38 | .SSEC | 0.31 | 10.19 |
India | INR=IN | +0.00 | -1.03 | .NSEI | 0.00 | 14.03 |
Indonesia | IDR= | -0.42 | -1.03 | .JKSE | -0.27 | 6.58 |
Malaysia | MYR= | -0.53 | +6.18 | .KLSE | 0.00 | 13.13 |
Philippines | PHP= | -0.31 | -4.22 | .PSI | 0.31 | 15.18 |
S.Korea | KRW=KFTC | -0.10 | -6.68 | .KS11 | -1.06 | -2.93 |
Singapore | SGD= | +0.04 | +0.26 | .STI | -0.24 | 11.28 |
Taiwan | TWD=TP | -0.24 | -4.14 | .TWII | -0.42 | 30.75 |
Thailand | THB=TH | -0.09 | +1.95 | .SETI | -0.34 | 4.79 |
Reporting by Adwitiya Srivastava in Bengaluru; Editing by Lincoln Feast.
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
