Business

Asian FX subdued on recession fears, Thai baht gains on H2 growth outlook

Today News ||

Article content

Most Asian currencies weakened on

Ads

Tuesday, a day after grim data from the world’s two biggest

economies reignited worries about a global recession, while the

Thai bhat advanced after the country’s central bank forecast a

rebound in second-half growth.

The Indonesian rupiah, Malaysian ringgit and

the Taiwan dollar weakened between 0.1% and 0.2%

against the U.S. dollar, which hovered near a one-week

high on safe-haven demand.

“Asian markets may range trade today as investors continue

Advertisement 2

Article content

to digest the recent soft economic data coming out from both

China and the U.S., and their implications for policy stimulus,”

analysts at OCBC Bank wrote.

Monday’s underwhelming Chinese activity data spanned

industrial output, retail sales and real estate, which was

followed by frail U.S. single-family homebuilders’ confidence

and weakness in a New York state factory activity survey.

This sent the onshore yuan to as much as 0.5%

lower to touch 6.7950 per dollar, its weakest level since May

16.

Resuming trade after a public holiday, the South Korean won

led the fall in the region with a 0.6% decline and

was on track for its worst day in over a week. But a boost to

RELATED:  Redefining Your Purpose in the Wake of the Pandemic

chipmaker shares buoyed the country’s benchmark stock index

Advertisement 3

Article content

to its highest level in nearly two months.

“Concerns over moderating external demand is likely to

remain intact in the interim, given traction by softer data out

of China and the U.S.,” analysts at Maybank wrote.

The rupiah extended losses for a second day after the

country’s statistic bureau on Monday warned that its windfall

export earnings, which heavily benefited from high commodity

prices, may start dwindling despite larger-than-expected surplus

in July.

The local currency has firmed 0.5% in August so far on a

nascent economic recovery. It had lost over 4% in the first

seven months of 2022.

Indonesia is also one of the few laggards in the region that

is yet to begin monetary tightening, with its central bank set

Advertisement 4

Article content

to meet next week amid strong second-quarter growth and soaring

inflation.

Bucking the broader trend, the Thai baht rose 0.4%

after the country’s central bank said that the domestic economy

was expected to continue growing in the second half of the year

as tourism picks up, despite a weaker-than-expected second

quarter.

“We expect the economy to strengthen further in 2H, driven

by a wider reopening from July,” Chua Han Teng, economist at DBS

RELATED:  Japan sounds alarm over Russian and Chinese military co-operation

said.

“Private consumption and tourism, already rising, are set to

gather additional momentum.”

The peso gave away its early gains to inch 0.1%

higher as the country’s central bank was set to deliver a

half-point point rate rise on Thursday, a Reuters poll showed.

The Bangko Sentral ng Pilipinas (BSP) was also widely

Advertisement 5

Article content

expected to hike rates by a quarter-point in September to catch

up with its peers in containing soaring inflation. That would

add to the hefty unscheduled 75 basis point rise in July, its

most aggressive since the central bank shifted to an

inflation-targetting approach in 2002.

HIGHLIGHTS

** Indonesian 10-year benchmark yields are up 3.2 basis

points at 7.081%​​

** Leading gains in KOSPI are Samsung Electronics

and peer SK Hynix, up 1.3% and 3.6%,

respectively

Asia stock

indexes and

currencies

at 0713

GMT

COUNTRY FX FX FX INDE STOC STOC

RIC X KS KS

DAILY YTD

% % DAIL YTD

Y % %

Japan 89 25> 1

China 8 EC> 4

India 9 EI>

Indonesia 5 SE>

Malaysia 4 SE> 1

Philippines 0 I> 2

S.Korea 2 11> 92

Singapore 2 I> 1

Taiwan 1 II> 36

Thailand 6 TI> 8

(Reporting by Indranil Sarkar in Bengaluru; Editing by Rashmi

Aich)

Advertisement

Comments

Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.

More Economy Business News Updates of Today Check Below

Today News || Business Today || World News || Headlines Today || Health || Technology News || Education News

Source

Tags
Show More

Related Articles

Back to top button
Close