INDIA AND ASIA FOREX MARKET REPORT - 22 JULY 2014 INR The Indian Rupee ended on quite a flat note on Monday against the US dollar, where the currency held in a tight range. While the rupee previously firmed up against the US dollar from exporters and banks initial dollar selling, the gains were then washed out from importers. Going forward the currency is expected to continue gains from a positive equity market. The positive sentiment among good inflation data released had protected the currency from downsides and is expected to continue to do so. The currencies tight range looks to be upheld with no other domestic influencers other than how the government will begin to deliver on the budget. In early morning trading the rupee recovered by 8 paise. PHP The Philippine peso plunged to its weakest level in nearly two weeks after President Benigno Aquino expressed concern that a Supreme Court ruling that blocked certain government expenditure will negatively affect the economy. The peso plunged 0.3% to trade at 43.610 per dollar in Manila after earlier declining to 43.665, its lowest level since July, 3. JPY The yen weakened as demand for haven assets waned after a surge last week amid turmoil in Ukraine and Gaza pushed the Japanese currency to the strongest level versus the USD and EUR in five months. IDR Indonesia’s rupiah has posted consecutive daily gains over last week as speculation mounts that official election results will confirm Joko Widodo as the next president and investor risk aversion showed signs of easing, although market players remained cautious about geopolitical risks. THB Thailands baht rallied to an eight-month high against the US dollar on positive surprise in the export data, but with increasing downside risks to the economy, the currency may soon meet stronger resistance levels. The USD/THB dropped to 31.9150 yesterday, its lowest since late November last year, down 0.7% from Fridays close. Thai exports rose 7.2% in June from a year earlier. That would be the first increase in four months and way above the market consensus of 3.1%. The baht has been on a rising trend since end-May, when the pair touched a four-month high of 32.895, and has strengthened more than 3% since then. MYR The MYR led the declines of Asian currencies on Friday in the aftermath of the crashing of Malaysian Flight 17 in eastern Ukraine. As a result of the crash, investors turned away from riskier assets such as emerging market currencies. The escalation of violence in the Middle East is also damaging market sentiment. WON The won rose as data showed global funds added to holdings of South Korean stocks for a sixth day, signalling an easing of tensions sparked by the downing of a passenger jet in Ukraine.
Posted on: Tue, 22 Jul 2014 11:08:26 +0000
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