Most Asian currencies recovered
marginally on Tuesday, with the South Korean won and Singapore
dollar leading gains, as the U.S. dollar pared some of its
The Malaysian ringgit declined sharply as political
uncertainty dampened sentiment.
The U.S. dollar, which rallied in the previous
session on mounting worries over China’s COVID situation, moved
broadly lower ahead of a COVID-19 press briefing in China later
in the day that is spurring hopes of a potential easing in the
country’s strict pandemic restrictions.
In Asia, the South Korean won recouped losses of
the previous day to be 1% higher at 0403 GMT, with the Singapore
dollar and Thailand’s baht adding 0.4% each.
Thailand is awaiting an update on its policy meeting due on
Wednesday, when the central bank is expected to raise interest
rates by a modest quarter-point for a third straight time, a
Reuters poll of economists found.
The Malaysian ringgit, which returned to trading
after an extended weekend, weakened 0.6%, snapping a three-day
winning streak, while the country’s stocks gave up 0.6%
as investors watched political developments.
Since mid-last week, when Malaysia got a new leader, the
ringgit has appreciated 1.5%, but it is down more than 7% so far
Across the region, stock indexes trading mixed. Shares in
Singapore, South Korea and Thailand
advanced between 0.3% and 1.0%. But in Indonesia,
Malaysia and Philippines shares lost between 0.1%
Markets globally are pricing in comments from the Fed
officials who flagged a need for continued policy tightening to
gain control of inflation, with no clarity on how far the
central bank will need to boost short-term borrowing costs.
“The Fed speakers are very clear that in the next FOMC
meeting in December, we will see a deceleration in the pace of
rate hikes to 50 basis points,” said Alvin Tan, head of FX
strategy at RBC Capital Markets. He added that markets were
anticipating slight cuts in interest rates in the second half of
This week, investors will keep a close watch on three U.S.
statistics releases: November consumer confidence data, due
later on Tuesday; the second estimate for third-quarter gross
domestic product, due on Wednesday; and non-farm payrolls for
this month, due on Friday.
** Indonesian 10-year benchmark yields rise 1.5 basis points
** Singapore’s stock index snaps four-day losing
** No sign of new protests in Beijing, Shanghai on Monday
Asia stock indexes and currencies
at 0403 GMT
COUNTRY FX RIC FX FX INDEX STOCKS STOCKS
DAILY % YTD % DAILY YTD %
Japan +0.21 -17.0 -0.58 -2.75
India +0.06 -8.93 0.19 7.16
Indonesi -0.06 -9.41 -0.08 6.54
Malaysia -0.62 -7.53 -0.53 -3.83
Philippi +0.07 -9.82 -0.95 -7.08
Singapor +0.36 -1.83 0.86 4.62
Taiwan +0.17 -10.6 0.59 -19.63
Thailand +0.44 -6.19 0.46 -2.01
(Reporting by Roushni Nair in Bengaluru; Editing by Bradley