EM ASIA FX-Asian currencies slip as Brexit pause dents risk appetite By Reuters


EM ASIA FX-Asian currencies slip as Brexit pause dents risk appetite

* Some Asian currencies gain against the pound

* Dollar firms, as U.S. bond prices rise

* South Korean won leads losses ahead of GDP data on Thursday (Adds text, updates prices)

By Nikhil Nainan

Oct 23 (Reuters) – A global shift into less risky assets weighed on most Asian currencies on Wednesday, and propped up the U.S. dollar, as new hurdles over Britain’s departure from the European Union kept investors on edge.

U.S. Treasury yields dropped overnight as investors bought safe-haven debt after British lawmakers on Tuesday voted against Prime Minister Boris Johnson’s tight timetable to leave the EU, but agreed to his Brexit plan. latest defeat effectively makes it near to impossible for Johnson to stick to his Oct. 31 deadline for Britain to leave the EU with a deal.

Despite dollar strength, some Asian units gained against the pound, which edged lower against the uncertain backdrop.

The Chinese yuan gained 0.3% against the pound GBPCNY= , while the peso advanced 0.2% to sterling .

Elsewhere, consumer prices in Malaysia rose at a slower pace than expected in September, reinforcing some views that the country’s central bank may cut interest rates again this year. inflation continues to be subdued, some weak signals emerged recently from the Malaysian economy, which had otherwise been outperforming the region,” ING said in a note prior to the data, adding that there may be a pre-emptive cut this quarter.

The ringgit MYR=MY eased 0.1% against the dollar.

Not far away, Singapore’s core inflation rate rose slightly less in September than it did the previous month, hitting a more than three-year low. Singapore dollar also weakened 0.1%.

Hopes of a U.S.-China trade deal helped limit losses for the yuan CNY=CFXS , traders said. The currency edged 0.1% lower. CNY/

The Philippine peso moved in the other direction, strengthening 0.1%.

ING said hefty government spending in September “should be a boost for the economy in the second half of the year. If so, we could imagine the BSP taking a backstep on further policy easing.”

The rupiah was flat on Wednesday, a day after it registered strong gains on the back of reports of the country’s new cabinet that spurred hopes of reforms aimed at boosting growth and investment. central bank is expected to cut interest rates on Thursday at its policy meeting. in Thailand were closed for a holiday.

SOUTH KOREA’S WON

South Korea’s economy is expected to grow at a slower pace in the third quarter than it did in the second as the trade-reliant nation deals with a prolonged U.S.-China trade war and a diplomatic tussle with neighbour Japan. won KRW=KFTC was the worst performer, dropping 0.3% against the dollar ahead of the data on Thursday.

Last week, South Korea’s central bank cut its policy interest rate KROCRT=ECI for the second time in three months and left the door open for further easing.

The next and last policy meeting of 2019, is on Nov. 29. CURRENCIES VS U.S. DOLLAR Currency

Latest bid Previous day Pct Move Japan yen

108.390

108.47

+0.07 Sing dlr

1.364

1.3623

-0.09 Taiwan dlr

30.615

30.594

-0.07 Korean won

1173.700

1169.7

-0.34 Peso

51.150

+0.10 Rupiah

14040.000 14037

-0.02 Rupee

70.915

70.93

+0.02 Ringgit

4.192

4.187

-0.11

7.083

7.0778

-0.07

Change so far in 2019

Currency

Latest bid End 2018

Pct Move Japan yen

108.390

109.56

+1.08 Sing dlr

1.364

1.3627

-0.06 Taiwan dlr

30.615

30.733

+0.39 Korean won

1173.700

1115.70

-4.94 Baht

30.290

32.55

+7.46 Peso

51.150

52.47

+2.58 Rupiah

14040.000 14375

+2.39 Rupee

70.915

69.77

-1.61 Ringgit

4.192

4.1300

-1.47 Yuan

7.083

6.8730

-2.96

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link

Spread the love