Latest news with #AsiaFX
Business Recorder
a day ago
- Business
- Business Recorder
Indian rupee poised to rise after dollar slumps; importer flows remain in focus
MUMBAI: The Indian rupee is likely to inch up at open on Tuesday, helped by the dollar falling to a fresh multi-year low on worries over US fiscal and trade policy. However, traders said the upside for the local unit may be limited, citing recent price action that points to persistent dollar buying by importers. The 1-month non-deliverable forward indicated an open in the 85.64 to 85.68 range, versus 85.7550 in the previous session. On Monday, the Indian currency rallied to 85.30, before dollar buying by state-run and foreign banks triggered a reversal. The reversal from 85.30 shows how challenging it is for the rupee to hold on at levels above 85.50, a currency trader at a private bank said. Importer demand is 'always lurking and yesterday, I reckon there were outflows via foreign banks.' The rupee's performance on the final day of June was reflective of its struggle through the month, during which it consistently lagged behind its Asian peers. While most regional currencies rallied between 4% and 12% in June, the Indian unit declined slightly, underscoring its relative underperformance. No respite for Dollar The dollar index slumped to a more than three-year low on Monday and held those losses during Asia hours, weighed down by concerns over the US fiscal deficit and uncertainty around key trade agreements. Indian rupee to ride Asia FX rally on US-China trade cheer Investors are staying away from the dollar amid US Senate's efforts to pass President Donald Trump's tax and spending bill, which faces internal Republican resistance due to its projected $3.3 trillion impact on the national debt. On trade, the July 9 deadline for Trump's tariffs is fast approaching. Investors are keeping an eye on trade deals between the US and its partners. In good news for the rupee, the White House said that the US and India are very near to finalising a trade deal.
Free Malaysia Today
05-05-2025
- Business
- Free Malaysia Today
Emerging Asian currencies rally spurred by hopes of trade deals
Bloomberg's gauge of Asian currencies hit a six-month high, with Malaysia's ringgit advancing to its strongest level since October. (Freepik pic) SINGAPORE : The currencies of Taiwan and Malaysia led advances among Asian peers on Monday, with sentiment lifted by hopes of a thaw in Sino-US trade tensions. Bloomberg's gauge of Asian currencies hit a six-month high, with Taiwan's dollar surging more than 2% in opening trades to the strongest level in over two years. Meanwhile, Malaysia's ringgit advanced to its strongest since October. MSCI's index of emerging market equities also gained. The rally in regional stocks and currencies comes after President Donald Trump suggested the US may strike trade deals with some countries as soon as this week, offering the prospect of relief for trading partners. 'Trade de-escalation is broadly positive on Asia FX as markets may feel more confident to buy the dip in the Asian assets that have been hammered due to Trump 2.0,' said Peter Chia, a strategist at United Overseas Bank Ltd. 'At the same time, it is worth noting that until trade deals are announced, Asia FX may stay volatile.' While the stiff tariffs announced by the Trump administration in early April roiled financial markets, they've since steadied amid signs that talks with Asian nations are progressing and trade tensions between China and the US are thawing. Underscoring the positive shift in sentiment is the huge turnover in Asian options and non-deliverable forwards. The South Korean won and Taiwan dollar ranked high among such contracts on Monday for a second session running, data compiled by Bloomberg show. That followed high turnover in Asian options and non-deliverable forwards going into the weekend. Markets in Hong Kong and mainland China were closed for a holiday on Monday.
BusinessToday
05-05-2025
- Business
- BusinessToday
Ringgit, Taiwan Dollar Lead Asian Rally As Trade Hopes Brighten
The ringgit strengthened to its highest level since October on Monday, joining a broader rally in regional currencies and equities as optimism grew over the possibility of easing Sino-US trade tensions. Taiwan's dollar led the gains in Asia, surging over 2% in early trading to its strongest point in more than two years. Investor sentiment was buoyed by comments from US President Donald Trump, who suggested that Washington may reach trade agreements with certain countries as early as this week. This injected a fresh wave of confidence into markets that have been rattled by protectionist measures and tariffs introduced by the Trump administration. Bloomberg's index of Asian currencies climbed to a six-month high, while MSCI's benchmark for emerging market equities also saw notable gains. The recovery reflects a broader rebound from earlier losses triggered by trade-related uncertainty and geopolitical tensions. 'Trade de-escalation is broadly positive on Asia FX as markets may feel more confident to buy the dip in the Asian assets that have been hammered due to Trump 2.0,' said Peter Chia, strategist at United Overseas Bank Ltd. 'At the same time, it is worth noting that until trade deals are announced, Asia FX may stay volatile.' Although the earlier imposition of stiff tariffs by the US in April had initially roiled global financial markets, recent developments suggest that negotiations with key Asian economies are showing progress. This has helped stabilise investor expectations and encouraged more risk-taking. Data compiled by Bloomberg indicate strong momentum in Asian derivatives markets as well, with high turnover in options and non-deliverable forwards. The South Korean won and Taiwan dollar featured prominently for the second consecutive session, pointing to sustained interest in hedging and positioning. Markets in Hong Kong and mainland China were closed for a public holiday, limiting participation from some of the region's largest financial hubs. However, the overall tone across Asia remained upbeat, as traders awaited clearer signals from Washington on the status of trade discussions. Bloomberg Related
