Thai baht hits two-month low as oil surge pressures Asian FX
Most Asian currencies weaken, with Thailand's baht leading losses at as much as 33.635 per dollar. Indonesian rupiah, Philippine peso and South Korean won also weaken as US yields rise.
635, hits 2 month low Rupiah slides further to as much as 17,960 against the dollar KOSPI leads declines in EM Asia equities, down over 2% By Shruti Agarwal Sept 28 (Reuters) — Most Asian currencies weakened on Monday, with Thailand's baht leading losses, as elevated oil prices and rising US Treasury yields eroded the region's interest-rate advantage, while stocks also traded in the red. The US-Iran standoff continued after the US rejected Iran's peace proposal over the weekend, spurring another leg higher in oil prices, keeping an October Fed hike in play and pressuring global bonds. 1% and the greenback is near a two-month high.
US/ A prolonged period of higher energy prices isseeding inflation risks in oil- and natural gas-importing economies andthreatening to widen fiscal gaps. Rising US yields also threaten to divert capital towards dollar assets, undermining emerging Asian currencies. "US yields have risen faster than local yields across several Asian markets, widening the US yield advantage and weakening relative rate support for regional currencies," Lloyd Chan, FX strategist at MUFG said in a note. 635 against the dollar, its lowest since late July.
4%. The three currencies have been the biggest laggards in the region this year, with Indonesia's rupiah faring worst, down over 7%. The deterioration in relative-rate support has been particularly pronounced in Thailand and Indonesia, leaving both currencies exposed, Chan said. Thailand's weak economic growth limits the scope for tighter monetary policy to counter external pressures, while Indonesia has increasingly relied on non-rate measures to support the rupiah even as foreign portfolio outflows have resurfaced, he added.
8% growth in the quarter prior. 5% next year and could reach 3% expansion within the next three years, the country's finance minister said on Friday, as the government pushes for new investments into key sectors. 0% fiscal deficit cap, threatening to undo a recent recovery after the rupiah touched a record low in June. 2%.
1%, onlimited volumes, while Taiwan's equities were not trading on the day due to a holiday. Asian equities were broadly lower, with South Korea's chipmaker-heavy stock benchmark tumbling over 2% in catch-up trading following a holiday break. 1% to their lowest since July 30. 6%.
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