Asian Currency

Asian markets rise as currencies rebound- Republic World


Asian currency market | Image:Unsplash

Asian markets rise: In Tuesday’s trading session, most Asian shares experienced gains, with Taiwan achieving a three-week high. Simultaneously, a weakening US dollar provided a boost for regional currencies, allowing them to recover from earlier losses.

Taipei’s stocks advanced by up to 0.4 per cent, reaching their highest level since January 2. Kuala Lumpur’s market also saw a 0.6 per cent increase, marking a one-week high. Seoul and Manila benchmarks registered upticks of 0.3 per cent and 0.4 per cent, respectively.

Dollar index slips

The recovery in regional currencies followed a 0.3 per cent slip in the dollar index, settling at $103.00. The yen gained 0.7 per cent in response to comments from Bank of Japan Governor Kazuo Ueda, contributing to Tokyo stocks reaching a 34-year peak after the central bank maintained its ultra-loose monetary policy.

In contrast, Thailand’s stocks remained flat following a nearly 1 per cent loss in the previous session. The benchmark experienced a 1 per cent decline last week, marking its worst performance in three weeks. The finance ministry downgraded Thailand’s economic growth projection for the year from 3.2 per cent to 2.8 per cent.

Yuan and Won rise

Across the region, other currencies struggled for direction. The Chinese yuan and the South Korean won made notable gains, rising 0.3 per cent and 0.4 per cent, respectively. The yuan’s performance suggested Chinese policymakers are considering mobilising around 2 trillion yuan ($278.91 billion) for a stabilisation fund to purchase shares.

The Singapore dollar also saw a 0.2 per cent climb, while the Indonesian rupiah, initially gaining ground, eventually traded flat. Adarsh Sinha, an analyst at BofA Securities, recommended caution, stating, “We recommend fading the sell-off in KRW, but that aside, the broader Asia FX spot, volume, and skew dynamics are more consistent with fundamentals than they first appear.”

(with Reuters inputs)



Source link

Leave a Response