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Business Recorder
23-05-2025
- Business
- Business Recorder
Asian currencies: Thai baht falls against dollar
BENGALURU: The Thai baht surrendered early gains on Thursday after the commerce minister called for a weaker currency to bolster exports, while the Philippine peso lagged regional peers over mounting political uncertainty in the Southeast Asian country. Overall, Asian currencies gained on a weak dollar while equities fell. Thailand's currency fell 0.3% to 32.825 per US dollar after rising 0.5% earlier in the day. Equities in Bangkok traded 0.3% lower. Pichai Naripthaphan, the country's commerce minister, said he wanted a weaker baht to support exports and that a level of 36-37 per US dollar was more suitable. The minister said that Thailand's exchange rate policy was not part of ongoing trade negotiations with the United States. 'The intraday reversal likely reflects how sensitive FX markets are to verbal intervention. When a senior policymaker explicitly says the currency needs to weaken, markets take that as a green light,' said Mohit Mirpuri, equity fund manager at SGMC Capital. 'While fundamentals like tourism recovery and current account surplus support the baht medium term, these types of comments can dampen momentum short term.' The Philippine peso was only marginally higher as mounting political uncertainty in the country capped gains, while stocks fell as much as 1.7% to hit their lowest level since April-end. Political instability has deepened in the Philippines after President Ferdinand Marcos Jr. asked for the resignation of his entire cabinet, following a lackluster performance by his allies in last week's Senate elections. Maybank analysts see support for the peso, including rising inflows, as the country's economy remains relatively sheltered. Meanwhile, the central bank of Sri Lanka surprised markets with a 25-basis-point rate cut in a bid to support growth in a country facing lingering economic issues. The Sri Lankan rupee inched higher while equities in Colombo jumped as much as 0.9% to hit their highest since March 3. Among other currencies, the Indonesian rupiah, Taiwan dollar and its Singaporean counterpart gained up to 0.4%, 0.3% and 0.1%, respectively. 'Asia EM FX has mainly been lifted by market perception that the US is looking for a weaker dollar versus Asian currencies, as part of its efforts to address its deep trade imbalances with several Asian economies,' said Lloyd Chan, FX strategist at MUFG. Stocks in Taiwan, Singapore and South Korea slipped 0.6%, 0.1% and 1.2%, respectively. Investor focus remained on US President Donald Trump's tax bill, set for a congressional vote this week.
Business Recorder
20-05-2025
- Business
- Business Recorder
Asia FX mixed against soft dollar
BENGALURU: Most emerging Asia stock markets tumbled on Monday, led by Taiwan, Malaysia and South Korea, as underwhelming economic data from China and a downgrade of United States' credit rating dented sentiment. In Southeast Asia, stocks in Kuala Lumpur fell 1.1% after a mixed bag of economic data from Asia's largest economy, China, pressurised risk appetite. China has been Malaysia's biggest trade and investment partner for nearly two decades. Trade-reliant South Korea's benchmark KOSPI fell as much as 1.3%. The country's financial authorities said they were watching domestic and international markets closely, warning that the US downgrade could exacerbate market volatility. Moody's downgraded the credit rating of the United States on Friday by a notch, citing ballooning debt and interest that it deemed higher than similarly rated sovereigns. 'The downgrade gave investors an excuse to book profit from the stock market near its previous peak,' said Huh Jae-hwan, an analyst at Eugene Investment Securities, referring to the benchmark index in Seoul. The won was 0.9% higher against the dollar, which dropped 0.4%. Taiwan also came under pressure, with its shares falling 1.5%. Taiwan Semiconductor Manufacturing Co, the world's largest chipmaker, fell 1.4%, reflecting broader concerns over the prospects of the global technology sector. Taiwan, a key player in the global semiconductor supply chain, has been increasingly seen by Washington as crucial in its efforts to shift global supply chains away from China, especially for technology and chip companies. The strategic importance of Taiwanese chip firms was underscored during the pandemic, when supply constraints disrupted the global electronics industry. Other equity markets in Asia were downbeat, with shares in Thailand, Philippines and Singapore lower by 0.6%, 0.2% and 0.5%, respectively. Currencies were mixed against a softer US dollar. The Thai baht led gains among its regional peers, adding 0.6% after first quarter economic growth beat market expectations. Elsewhere, the Malaysian ringgit extended losses after the domestic central bank trimmed annual economic growth forecasts. The currency was last trading unchanged. The Indonesian rupiah was steady ahead of a Bank Indonesia meeting later in the week, prefaced by growing expectations of a rate cut. 'While a rate cut could support equities, it may cap any near-term strength in the currency, especially with US yields still elevated and the Federal Reserve in no rush to ease,' said Mohit Mirpuri, an equity fund manager with SGMC Capital.
The Star
19-05-2025
- Business
- The Star
Emerging Markets - Asia forex mixed against soft dollar as Taiwan equities lead losses
SOUTH-EAST ASIA (Reuters): Most emerging Asia stock markets tumbled on Monday, led by Taiwan, Malaysia and South Korea, as underwhelming economic data from China and a downgrade of United States' credit rating dented sentiment. In South-East Asia, stocks in Kuala Lumpur fell 1.1% after a mixed bag of economic data from Asia's largest economy, China, pressurised risk appetite. China has been Malaysia's biggest trade and investment partner for nearly two decades. Trade-reliant South Korea's benchmark KOSPI fell as much as 1.3%. The country's financial authorities said they were watching domestic and international markets closely, warning that the US downgrade could exacerbate market volatility. Moody's downgraded the credit rating of the United States on Friday by a notch, citing ballooning debt and interest that it deemed higher than similarly rated sovereigns. "The downgrade gave investors an excuse to book profit from the stock market near its previous peak," said Huh Jae-hwan, an analyst at Eugene Investment Securities, referring to the benchmark index in Seoul. The won was 0.9% higher against the dollar, which dropped 0.4%. Taiwan also came under pressure, with its shares falling 1.5%. Taiwan Semiconductor Manufacturing Co, the world's largest chipmaker, fell 1.4%, reflecting broader concerns over the prospects of the global technology sector. Taiwan, a key player in the global semiconductor supply chain, has been increasingly seen by Washington as crucial in its efforts to shift global supply chains away from China, especially for technology and chip companies. The strategic importance of Taiwanese chip firms was underscored during the pandemic, when supply constraints disrupted the global electronics industry. Other equity markets in Asia were downbeat, with shares in Thailand, Philippines and Singapore lower by 0.6%, 0.2% and 0.5%, respectively. Currencies were mixed against a softer US dollar. The Thai baht led gains among its regional peers, adding 0.6% after first quarter economic growth beat market expectations. Elsewhere, the Malaysian ringgit extended losses after the domestic central bank trimmed annual economic growth forecasts. The currency was last trading unchanged. The Indonesian rupiah was steady ahead of a Bank Indonesia meeting later in the week, prefaced by growing expectations of a rate cut. "While a rate cut could support equities, it may cap any near-term strength in the currency, especially with U.S. yields still elevated and the Federal Reserve in no rush to ease," said Mohit Mirpuri, an equity fund manager with SGMC Capital. - Reuters
Business Recorder
19-05-2025
- Business
- Business Recorder
Asia FX mixed; ringgit extends decline on weak growth outlook
The Malaysian ringgit extended losses on Monday after the central bank lowered its annual growth forecast, while other emerging currencies were mixed against a dollar softened by Moody's downgrade of the United States' credit rating. Malaysia's currency fell as much as 0.5% to 4.313 per US dollar while equities dropped 1%. The Southeast Asian country's economy expanded by 4.4% in the first quarter, data showed Friday, slowing from the previous quarter. The central bank flagged a dimmer outlook as persistent trade tensions weighed on consumer spending and investment. Analysts at Citi described the data as dovish and said it may bring the central bank closer to a 25-basis-point rate cut in the second half of the year. Elsewhere in the region, the Thai baht led gains among Asian currencies, while the Taiwan dollar and Singapore dollar also edged higher. The Indonesian rupiah fell 0.4% while the Philippine peso was more or less unchanged. The US dollar softened in early Asia trade, after a sharp 0.6% advance last week, with Moody's surprise downgrade intensifying concerns around the country's bloating debt pile. 'While there was some relief from the temporary pause in US-China tariffs, Moody's downgrade of US credit rating has added a layer of uncertainty,' said Mohit Mirpuri, an equity fund manager with SGMC Capital. Malaysia's ringgit leads Asian FX losses ahead of BNM rate decision Data from Thailand showed gross domestic product grew more than expected during the first quarter but the state planning agency lowered its annual forecasts on lingering worries over the country's export-focussed economy. The Bank of Thailand had downplayed the chances of more rate cuts last week despite a worsening economic outlook from trade concerns, challenges stemming from an aging population, low productivity, and high household debt. Equity markets were downbeat in emerging Asia while Chinese shares pared some losses after China's industrial output grew faster than anticipated in April. Underwhelming economic data out of China underscored the mounting challenges for the economy posed by its ongoing trade spat with the US. US equity futures dipped as global markets continued to assess the fallout from Moody's credit action. Stocks in Thailand and Singapore fell 0.2% and 0.2% respectively. Shares in Taiwan and South Korea fell 1.2% each.
New Straits Times
19-05-2025
- Business
- New Straits Times
Asia FX mixed; ringgit extends decline on weak growth outlook
KUALA LUMPUR: The Malaysian ringgit extended losses on Monday after the central bank lowered its annual growth forecast, while other emerging currencies were mixed against a dollar softened by Moody's downgrade of the United States' credit rating. Malaysia's currency fell as much as 0.5 per cent to 4.313 per US dollar while equities dropped 1 per cent. The Southeast Asian country's economy expanded by 4.4 per cent in the first quarter, data showed Friday, slowing from the previous quarter. The central bank flagged a dimmer outlook as persistent trade tensions weighed on consumer spending and investment. Analysts at Citi described the data as dovish and said it may bring the central bank closer to a 25-basis-point rate cut in the second half of the year. Elsewhere in the region, the Thai baht led gains among Asian currencies, while the Taiwan dollar and Singapore dollar also edged higher. The Indonesian rupiah fell 0.4 per cent while the Philippine peso was more or less unchanged. The US dollar softened in early Asia trade, after a sharp 0.6 per cent advance last week, with Moody's surprise downgrade intensifying concerns around the country's bloating debt pile. "While there was some relief from the temporary pause in US-China tariffs, Moody's downgrade of US credit rating has added a layer of uncertainty," said Mohit Mirpuri, an equity fund manager with SGMC Capital. Data from Thailand showed gross domestic product grew more than expected during the first quarter but the state planning agency lowered its annual forecasts on lingering worries over the country's export-focussed economy. The Bank of Thailand had downplayed the chances of more rate cuts last week despite a worsening economic outlook from trade concerns, challenges stemming from an aging population, low productivity, and high household debt. Equity markets were downbeat in emerging Asia while Chinese shares pared some losses after China's industrial output grew faster than anticipated in April. Underwhelming economic data out of China underscored the mounting challenges for the economy posed by its ongoing trade spat with the US US equity futures dipped as global markets continued to assess the fallout from Moody's credit action. Stocks in Thailand and Singapore fell 0.2 per cent and 0.2 per cent respectively. Shares in Taiwan and South Korea fell 1.2 per cent each
