Dollar edges higher, currencies pull back on Omicron-shock moves

LONDON - The dollar edged higher, the euro fell and the yen steadied on Monday as currency markets reversed some of Friday's moves, calming after the initial shock of discovering a new coronavirus variant.

The Omicron variant, first detected in southern Africa, triggered global alarm, with financial markets selling off on Friday on fears that it would disrupt the economic recovery after the two-year pandemic.

The World Health Organization said it was not yet clear whether Omicron, which has been found around the world, is more transmissable than other variants or if it causes more severe disease.

Markets calmed somewhat on Monday, however, with US stock futures and oil prices rebounding, as investors took a more balanced view, waiting until the impact of the variant becomes more clear.

The US dollar index, which had its biggest one-day drop since May on Friday, edged back higher and at 0821 GMT was up 0.1 percent on the day at 96.326.

The dollar's status as a safe-haven currency means it can benefit from uncertainty, but it fell on Friday because the Omicron variant was seen as possibly affecting when the Federal Reserve and other major central banks will raise rates.

The euro, which rose versus the dollar on Friday, was down around 0.4 percent at $1.12665.

Commerzbank's head of FX and commodity research Ulrich Leuchtmann wrote in a client note that the euro had initially benefited from the Omicron variant because of the dovishness of the European Central Bank.

"If Omicron leads to lockdowns and a renewed reduction in economic activity on a global scale all rate hike expectations turn out to be in vain and then they will be priced out again pretty quickly," he said.

"And which currencies will be the relative winners? Of course, the ones where rate hikes were never priced in very much in the first place. And those were EUR, JPY and CHF."

Japan's yen steadied and was up around 0.2 percent on the day versus the dollar at 113.33 at 0829 GMT. Euro-yen hit a new nine-month low.

The Swiss franc likewise reversed recent moves. On Friday it had its biggest one-day jump versus the dollar since June 2016, a slightly bigger daily move than at the peak of the first coronavirus-induced market shock in March 2020, but on Monday it was down 0.4 percent on the day, at 0.9256.

Analysts said that currency markets would likely remain volatile until the new variant is better understood.

"Vaccine efficacy results with the next two weeks will be the most important headline to watch out for as well as whether symptoms are different from that of other variants," wrote Nomura analyst Jordan Rochester in a note to clients.

Goldman Sachs said it would not change its economic forecasts on the basis of the Omicron variant until its likely impact becomes clearer.

BioNTech said on Friday it may know within two weeks if the vaccine it developed with Pfizer needs to be reworked.

Meanwhile, in cryptocurrencies, bitcoin hit a seven-week low on Sunday before picking up. At 0837 GMT, it was at $57,386.24, up around 0.1 percent on the day but still below its latest all-time high of $69,000, which was hit earlier this month.

(Reporting by Elizabeth Howcroft, editing by Ed Osmond)

-reuters

Dollar slips, lacking momentum ahead of central bank meetings

LONDON - The dollar slipped on Tuesday but struggled to gain momentum, with most major currency pairs little changed as investors waited for major central bank meetings this week and next to indicate the direction of currency markets.

The Bank of Canada meets on Wednesday, then the Bank of Japan and European Central Bank meetings are on Thursday. Next week the Reserve Bank of Australia meets on Tuesday, the US Federal Reserve on Wednesday, and the Bank of England and Norges Bank on Thursday.

In equity markets there were signs of improved risk appetite due to strong earnings, with European stocks opening higher following a rally in the Asian session.

But the dollar index held steady, down 0.1 percent at 93.724 at 1132 GMT.

Simon Harvey, a currency analyst at Monex Europe, said that a flattening of the US yield curve also contributed to the dollar's downward move, by improving risk appetite.

The greenback rose 0.2 percent against the Japanese yen, with the pair at 113.930, holding below the four-year high of 114.695 reached last week.

The Bank of Japan is set to maintain its massive stimulus program and slash this year's inflation forecast in a sign it has no intention to follow other central banks that are preparing exits from crisis-mode policies.

The Canadian dollar was steady ahead of Wednesday's meeting, at which the central bank is expected to raise its inflation forecast and to largely end stimulus from its pandemic-era bond buying program, starting a tentative countdown to the first interest rate hike since October 2018.

The Australian dollar, seen as a liquid proxy for risk appetite, was up 0.3 percent at $0.75155. Last week, it rose above the key $0.75 level for the first time since July.

"If the rally on the commodity market continues, AUD is likely to remain supported for now," wrote Commerzbank strategist You-Na Park-Heger in a client note.

The New Zealand dollar was up 0.4 percent at $0.71895.

The euro was up 0.1% at $1.162. Expectations that the European Central Bank will take a dovish stance when it meets on Thursday have weakened the euro in recent sessions.

"We believe that there is a good chance that the ECB will push back against current market pricing for ECB rate hikes," wrote MUFG currency analyst Lee Hardman in a note to clients.

"The ECB's continued reluctance to raise rates should continue to weigh on the euro as other G10 central banks embark on hiking cycles."

ING strategists noted that, so far in 2021, energy-exporting currencies whose central banks are preparing to tighten - such as the Canadian dollar or Norwegian crown - have outperformed.

"The worst performers in the G10 space are the JPY and the EUR, both net energy importers, suffering the negative income shock from higher energy prices and with some of the most dovish central banks in the world," they wrote in a note to clients.

"Low energy inventories for both gas and crude and no signs that supply frictions are going to be eased anytime soon suggests this story should continue to play out."

China's offshore yuan was a touch stronger against the dollar, with the pair changing hands at 6.3771.

A call between China's Vice Premier Liu He and US Treasury Secretary Janet Yellen was seen as positive for Sino-US relations.

Bitcoin was down around 0.6 percent at $62,742.65 at 1138 GMT, having fallen below the all-time high of $67,016.50 it reached last week.

(Reporting by Elizabeth Howcroft; editing by John Stonestreet and Angus MacSwan)

-reuters-

Stock market rally fades ahead of US holiday

BEIJING  — The rally in global stock markets, which saw the Dow close above 19,000 for the first time, petered out on Wednesday as investors prepared for a holiday in the U.S.

KEEPING SCORE: Britain’s FTSE 100 rose 0.3 percent to 6,636 while Germany’s DAX shed 0.6 percent to 10,655. France’s CAC 40 dropped 0.4 percent to 4,529. On Wall Street, the futures for the Dow Jones industrial average and the Standard & Poor’s 500 index were both unchanged, a day after the Dow closed above the 19,000 mark for the first time. The U. S. markets will be closed Thursday for Thanksgiving holiday.

WALL STREET: U.S. markets have been the focus since the election of Donald Trump as U.S. president, which many investors bet will be positive for companies. They expect less regulation of financial services and possibly tax cuts as well as spending on infrastructure. He has affirmed plans to withdraw from the Trans-Pacific Partnership but avoided mentioning his campaign pledge to build a wall along the Mexican border. “As Trump has rowed back and not mentioned some of his more extreme policy sound bites, some worries about the nature of his presidency may have begun to abate,” Alex Furber of CMC Markets said in a report. That has helped U.S. indexes hit record highs, with the Dow surpassing 19,000 for the first time and closing at a record high six times in the two weeks.

ANALYST’S TAKE: “The bulls have got control here,” Chris Weston of IG said in a report. “U.S. equity and many other developed markets are going higher, at least in the short-term.” Weston noted investors assume the U.S. Federal Reserve will go ahead with an interest rate hike in December. “Emerging markets have found support and are even attracting buyers,” said Weston. “If the Fed were to assess financial conditions in the wake of a potential rate hike they would be wholly enthused.”

ASIA’S DAY: Sydney’s S&P-ASX 200 rose 1.3 percent to 5,484.40 and Seoul’s Kospi advanced 0.2 percent to 1,987.95. India’s Sensex gained 0.5 percent to 26,081.22 and Hong Kong’s Hang Seng ended unchanged at 22,676.69. The Shanghai Composite Index shed 0.2 percent to 3,241.14. Japanese markets were closed for a holiday. Benchmarks in New Zealand and Taiwan gained while Indonesia retreated.

ENERGY: Benchmark U.S. crude fell 16 cents to $47.87 per barrel in electronic trading on the New York Mercantile Exchange. The contract lost 21 cents on Tuesday. Brent crude, used to price international oils, shed 12 cents to $49.00 in London. The contract added 22 cents the previous session.

CURRENCY: The dollar was roughly steady at 111.21 yen while the euro fell to $1.0615 from Tuesday’s $1.0630. TVJ

source: business.inquirer.net

Dollar edges up in Asia after New York sell-off

TOKYO — The dollar edged up against the yen in Asia on Friday after plunging on weak Chinese data which sparked worries over emerging markets.

In Tokyo afternoon trade, the dollar fetched 103.44 yen, up from 103.34 yen in New York Thursday afternoon but still nearly one yen lower than levels in Tokyo on Thursday.

The euro, which climbed Thursday on upbeat eurozone data, bought $1.3684 from $1.3692 in US trade Thursday while it was unchanged at 141.59 yen.

“Risk assets suffered as a much bigger than expected fall in Chinese manufacturing (activity) dented global sentiment,” Credit Agricole said.

Traders moved into the safe-haven yen Thursday as US shares sank on the weak China report and lacklustre corporate earnings, while they look ahead to a Federal Reserve policy meeting next week.

“The poor China data merely exacerbates the worries about emerging markets, and is pushing an acceleration in the investor pullout from these economies, which is not limited to China,” said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

The data from China — a key driver of global growth — fuelled concerns about emerging markets at a time when the Fed is winding down its stimulus programme, leading foreigners to repatriate their investments to the West.

Argentina’s peso was at 7.9 to the dollar Friday against 8.01 on Thursday, when it had plunged 11.1 percent in the sharpest one-day fall since 2002.

The South American nation is embroiled in a currency crisis that has seen the peso slump about 19 percent so far this year, creating challenges for a government wrestling with falling foreign reserves and mounting inflation.

Boosting the euro, a closely watched report Thursday showed private-sector activity in the eurozone hit a 31-month high in January as a modest recovery gathered pace across the economic bloc.

The dollar was mostly higher against other Asia-Pacific currencies.

It rose to 1,076.70 South Korean won from 1,072.76 won on Thursday, to 12,180 Indonesian rupiah from 12,168 rupiah and to 62.16 Indian rupees from 61.97 Indian rupees.

The dollar also firmed to 45.32 Philippine pesos from 45.30 pesos and to Tw$30.22 from Tw$30.19.

It slipped to 32.86 Thai baht from 32.97 baht and to Sg$1.2785 from Sg$1.2814.

The Australian dollar eased to 87.59 US cents from 87.98 cents, while the Chinese yuan weakened to 17.07 yen from 17.23 yen.

source: business.inquirer.net

Dollar edges down in Asia ahead of Yellen remarks – Lead

TOKYO- The dollar edged down in Asia Wednesday, taking a breather from a rally driven by speculation the Fed will soon start tapering its huge stimulus drive.

The greenback bought 99.48 yen in Tokyo afternoon trade, weakening from 99.62 yen in New York Tuesday.

The euro strengthened to $1.3447 from $1.3433 while it bought 133.76 yen compared with 133.82 yen in US trade.

Dealers are awaiting remarks Thursday from Janet Yellen, President Barack Obama’s nominee to succeed Chairman Ben Bernanke at the Federal Reserve, said a senior dealer at a major bank in Tokyo.

Some investors want to push the dollar above the 100-yen mark but “many of us just don’t want to make aggressive moves before we confirm Ms Yellen makes no negative surprises,” the dealer said.

Yellen will appear before US senators Thursday to defend her nomination as Fed policymakers debate whether the stimulus policy known as quantitative easing is still needed to support the world’s largest economy.

The central bank will hold its regular two-day policy meeting next month after upbeat US data fuelled speculation that it could start tapering its $85-billion-a-month bond-buying program before year’s end.

Traders also are awaiting eurozone industrial production figures for September, due later Wednesday, which will be followed by July-September economic growth data on Thursday.

The dollar was higher against other Asia-Pacific currencies.

It rose to Sg$1.2495 from Sg$1.2486 on Tuesday, to Tw$29.59 from Tw$29.56, to 63.73 Indian rupees from 63.53 rupees, and to 43.77 Philippine pesos from 43.70 pesos.

The greenback inched up to 31.59 Thai baht from 31.57 baht and to 1,072.93 South Korean won from 1,071.20 won.

The Australian dollar fell to 93.04 US cents from 93.29 cents, while the Chinese yuan was at 16.30 yen against 16.31 yen.

source: business.inquirer.net

Asia stocks muted on prospect Fed to trim stimulus

MUMBAI, India—Asian stocks markets were muted Friday despite an uptick in China’s manufacturing as investors continued to fret that the Fed will begin cutting its stimulus as soon as January.

Two measures of China’s manufacturing improved in October in a possible sign of economic recovery. China’s growth rebounded to 7.8 percent in the three months ended September from the previous quarter’s two-decade low but there are doubts whether the improvement will continue over the remainder of the year.

Worries about less expansive US monetary stimulus continued to preoccupy investors. Stocks fell in Tokyo, Australia, Taiwan and Singapore fell. Greater China benchmarks were mixed.

The Federal Reserve’s announcement this week that it would maintain its monthly bond purchases at $85 billion was widely expected. But the central bank no longer expressed concern, as it did in September, that higher mortgage rates could hold back hiring and economic growth. And its statement made no reference to the 16-day government shutdown, which economists say slowed growth this quarter. Some analysts said that suggests reduction of the stimulus could begin early next year.

The U.S. central bank’s cheap money policy is aimed at supporting economic recovery and has also underpinned stock markets worldwide for several years

Speculation about the timing of the reduction in stimulus — known as tapering — will likely continue to roil markets in coming months, said Chris Weston, chief market strategist at IG in Melbourne, Australia.

“The Asian session has been pretty lifeless today,” Weston said in a market commentary. “Despite it mattering very little whether tapering occurs in January or March, we are still likely to see a negative equity response.”

Japan’s Nikkei 225, the regional heavyweight, fell 0.9 percent to 14,201.57, weighed down by the dollar falling below 98 yen and a 12 percent plunge in Sony Corp. shares after it Thursday reported a 19.3 billion yen ($196 million) quarterly loss.

Hong Kong’s Hang Seng crept up 0.4 percent to 23,290.46 while Australia’s S&P/ASX 200 shed 0.4 percent to 5,411.10. Markets in Taiwan, Singapore and Indonesia fell. Seoul’s Kospi added 0.5 percent to 2,039.42.

The exception to a dull Friday came in India’s stock market, where a modest gain was enough to push the Sensex to a record high — a stunning comeback from a few months ago when the bourse plunged and the Indian rupee fell to a lifetime low as foreign investors withdrew amid a bout of worry about withdrawal of the Fed’s stimulus.

Much of that foreign money has returned now that the rupee has stabilized at a lower level, making Indian stocks a bargain.

“I think clearly the largest driver of the market high is foreign currency inflow,” said Rajiv Mehta, an analyst with IIFL Capital in Mumbai. “Many people seem to think the worst is over.”

On Wall Street, the Dow lost 73.01 points, or 0.5 percent, to close at 15,545.75. The S&P 500 fell 6.77 points, 0.4 percent, to 1,756.54.

The Nasdaq composite dropped 10.91 points, or 0.3 percent, to 3,919.71.

Benchmark U.S. crude for December delivery was up 21 cents at $96.59 a barrel in electronic trading on the New York Mercantile Exchange. The contract had dropped 39 cents to close $96.38 on Thursday.

In currency trading, the euro was down at $1.3550 from $1.3586 late Thursday. The dollar fell to 97.95 yen from 98.31 yen.

source: business.inquirer.net

Asian shares lifted by bargain-buying, Wall St. rally

HONG KONG—Asian markets rose on Monday following a record close on Wall Street, and as investors picked up bargains after broad losses last week.

The dollar advanced against the yen but the gains were capped by expectations the US Federal Reserve will keep its monetary easing policy in place well into the new year.

Tokyo jumped 2.19 percent, or 307.85 points, to 14,396.04 thanks to the pick-up in the dollar. Sydney was up 1.02 percent, or 55.1 points, at 5,441.4, while Seoul closed 0.68 percent higher, adding 13.75 points to 2,048.14.

Shanghai ended flat, edging up 0.91 points to 2,133.87 while Hong Kong added 0.48 percent, or 108.24 points, to end at 22,806.58

The gains follow a lacklustre performance in the region last week following worse than expected jobs figures out of the United States that indicate the economy is not as strong as first thought.

Traders Monday took their cue from Wall Street, whose three main indexes posted healthy gains on Friday thanks to upbeat corporate results.

Amazon and Microsoft announced better than expected earnings for the July-September quarter, while there were also solid results from Procter & Gamble and UPS.

The Dow rose 0.39 percent, while the broad-based S&P 500 climbed 0.44 percent to a new record Friday. The Nasdaq tacked on 0.37 percent.

US shares, like most global stocks, have been given some support from traders betting the Fed will delay winding down its $85 billion-a-month bond-buying stimulus for some time.

There had been a widespread belief it would begin tapering by December at the latest, but analysts say the weak jobs data and this month’s government shutdown has made that unlikely.

The prospect of a continuation of the Fed’s pump-priming—which sees vast sums of dollars flooding the financial system—has weighed on the greenback in recent weeks, although it picked up a tad in Asia Monday.

In afternoon Tokyo trade the unit bought 97.67 yen compared with 97.43 yen in New York Friday, while the euro was at $1.3811 and 134.76 yen against $1.3805 and 134.50 yen.

“Amid growing expectations of continued Fed stimulus, the dollar will likely remain under pressure in the near term,” Naoya Nishimura, a strategist at Resona Bank, told Dow Jones Newswires.

On oil markets New York’s main contract, West Texas Intermediate for delivery in December, was down 18 cents at $97.67 in afternoon trade. Brent North Sea crude for December rose 37 cents to $107.30.
Gold rose to $1,350.24 at 1100 GMT compared with $1,340.35 on Friday.

In other markets:

– Mumbai fell 0.55 percent, or 113.24 points, to 20,570.28 points.

Private Future Retail fell 6.90 percent to 72.20 rupees while diversified conglomerate ITC fell 3.63 percent to 327.65 rupees.

– Bangkok lost 0.36 percent, or 5.26 points, to close at 1,449.62.

Coal producer Banpu fell 0.85 percent to 29.25 baht while Bangkok Bank rose 0.99 percent to 205 baht.

– Jakarta ended up 0.21 percent, or 9.69 points, at 4,590.54.

Indah Kiat Pulp and Paper gained 0.69 percent at 1,450 rupiah, while miner Aneka Tambang lost 1.88 percent at 1,570 rupiah.

– Kuala Lumpur’s main index gained 0.05 percent, 0.82 points, to close at 1,818.39.

UEM Sunrise lost 3.9 percent to 2.50, Felda Global Ventures Holdings eased 2.2 percent to 4.40 while Petronas Gas added 2.1 percent to 24.30 ringgit.

– Singapore gained 0.08 percent, or 2.61 points, to 3,207.85.

Agribusiness company Wilmar International rose 0.29 percent to Sg$3.46 while United Overseas Bank was down 0.19 percent at Sg$20.75.

– Taipei finished up 0.73 percent, or 61.21 points, at 8,407.83.

Taiwan Semiconductor Manufacturing Co. gained 2.34 percent to Tw$109.5 while leading food producer Uni-President Enterprise was 2.21 percent higher at Tw$55.5.

– Manila was closed for village elections.

– Wellington was closed for a public holiday.

source: business.inquirer.net

Dollar rises in Asia ahead of key US jobs data

TOKYO – The dollar rose in Asian trade Tuesday as investors looked to key US jobs data later in the day as a gauge of the state of the world’s largest economy.

The greenback changed hands at 98.32 yen in Tokyo midday trade, up from 98.15 yen in New York Monday afternoon, partially shored up by speculation over strong jobs data, dealers said.

The euro weakened to $1.3661 from $1.3681 while it rose to 134.36 yen from 134.26 yen.

All eyes were on the September jobs report, which was delayed by a two-week US government shutdown but will be released later Tuesday.

Labor market strength is a key factor for the Federal Reserve’s timeline in scaling back its huge monetary easing drive.

“If Monday was quiet in front of Tuesday’s delayed US employment report, today threatens to be even more soporific as markets count the clock down” to the jobs data release, National Australia Bank said.

An upside surprise could see a revival of expectations that Fed tapering would still commence in December, the bank said, a move that would support the dollar.

“There may though be an inclination to dismiss the numbers as too backward-looking given the subsequent government shutdown and at least small hit to confidence and activity this month,” it added.

Osao Iizuka, head of FX trading at Sumitomo Mitsui Trust Bank, told Dow Jones Newswires that “the market lacks energy to move in either direction.”

While Japanese exporters are placing selling orders above 99.00 yen, importers are looking to buy below 97.50, keeping the dollar-yen rate in a narrow band, he added.

source: business.inquirer.net

Dollar sinks in Asia on US debt fears

TOKYO – The dollar fell in Asia Monday as investors fear a US budget deadlock in Washington could continue past a mid-October deadline to raise the country’s borrowing limit and cause a devastating default.

The greenback bought 97.08 yen in Tokyo, against 97.47 yen in New York Friday afternoon.

The euro was at $1.3567 and 131.76 yen, compared with $1.3557 and 132.14 yen.

Traders are buying the safe-haven yen on concerns US lawmakers – whose face-off has forced a government shutdown – will not strike a budget deal before October 17, when the government runs out of cash to pay its bills and could in turn default.

A similar showdown in 2011 saw the borrowing limit raise at the last minute but not before global stock markets tumbled while the crisis caused the downgrade of Washington’s sovereign debt rating.

US Treasury Secretary Jack Lew warned Sunday that Congress was “playing with fire” as Republican House leader John Boehner said the party would not raise the US debt ceiling without spending cuts.

“If anything both sides have become more entrenched in their positions, implying that any agreement on raising the debt ceiling… also looks out of reach,” Credit Agricole said.

“Market reaction so far has been relatively muted in the expectation of an agreement but such hopes may prove optimistic,” it added.

The government shutdown, which is entering its seventh day, has also affected the release of US economic data with no clarity on when key non-farm payrolls data, originally due out last week, will be published.

source: business.inquirer.net

Dollar edges up amid speculation about US economy

TOKYO – The dollar edged up on Monday as trading remained cautious amid speculation about the timing of an end to massive US stimulus plans.

The dollar gained to 98.49 yen in morning Asian trade from 98.16 late Friday in New York.

The euro bought $1.3202, down from $1.3218, while the single currency was trading at 130.09 yen against 129.82 yen.

US financial markets are closed Monday for the Labor Day federal holiday.

“The market is paying more attention to US economic indicators than Syria,” said Daisuke Karakama, market economist at Mizuho Bank’s forex division.

“Especially, the market is focusing on US jobless figures to be released on Friday, ahead of the upcoming FOMC meeting,” Karakama said.

“Nervous trading is expected during the week as we need to pay attention to a lot of things,” he added.

US consumer spending sputtered in July amid weak income growth, according to Commerce Department data released Friday.

The new data cast a cloud over speculation that the Federal Reserve will begin to reduce its $85 billion-a-month bond-buying programme this year.

Concerns about the strength of the major economic indicators in the third quarter could convince the Fed to delay the move, which could come as soon as its September 17-18 monetary policy meeting.

source: business.inquirer.net

Dollar sags in Asia on Syrian tension

TOKYO—The dollar edged down against the safe-haven yen in Asia on Tuesday due to concerns over a possible US military action against Syria.

The dollar was at 98.29 yen in Tokyo afternoon trade, down from 98.51 yen in New York Monday afternoon.

The euro bought $1.3373 and 131.45 yen compared with $1.3369 and 131.68 yen.

The greenback lost ground in the wake of a decline in Tokyo stocks and due to concerns over a possible US military strike against Syria, said a dealer at a Japanese bank.

“The possibility of the US military attacks could make investors risk averse, weighing on the dollar,” he told Dow Jones Newswires.

US Secretary of State John Kerry gave the most explicit warning yet to Damascus that the US would take action over the chemical weapons attack, which he labelled a “moral obscenity”.

Speaking amid reports that Washington and its allies are preparing to launch a punitive cruise missile strike on Syrian targets, Kerry accused Bashar al-Assad’s regime of engaging in a cover-up.

“Let me be clear. The indiscriminate slaughter of civilians, the killing of women and children and innocent bystanders by chemical weapons is a moral obscenity,” he declared in a televised statement.

“By any standard it is inexcusable, and despite the excuses and equivocations that some have manufactured, it is undeniable.”

Emerging Asia currencies were mostly lower, with the Indian rupee trading at 65.32 to the dollar, down from 64.23 Monday afternoon and close to a record low of 65.56 last week.

Expectations of an end to the US stimulus programme have seen investors in recent months repatriate some of the vast sums that have poured into emerging economies, hitting currencies and equities.

“Coming on the heels of Friday’s soft US new home sales report, the market has become even more alert to the (US) economy’s readings into the September 18 FOMC,” National Australia Bank said.

Some speculate the US central bank would announce its start of tapering the bond-buying programme at the next September 17-18 meeting of the policy-setting Federal Open Market Committee.

The dollar rose to 10,925 Indonesian rupiah from 10,770 on Monday.

It went up to 44.43 Philippine pesos from 44.20 pesos, to 1,115.85 South Korean won from 1,113.20 won, and to Sg$1.2824 from Sg$1.2791, and to Tw$29.97 from Tw$29.89.

The Thai baht was flat at 32.16 baht.

The Australian dollar fell to 89.81 US cents from rose to 90.39 cents. The Chinese yuan fetched 16.03 yen against 16.07 yen.

source: business.inquirer.net

Peso falls as excitement over investment grade rating eases

MANILA, Philippines—The peso fell on the first trading day after the Lenten break as the euphoria over the Philippines’ attainment of an investment grade eased.

The local currency closed at its intraday low of 40.84 against the US dollar on Monday, down by 4 centavos from the finish of 40.80:$1 on March 27.

Intraday high hit 40.75:$1. Volume of trade reached $530.4 million from $1.14 billion previously.

Traders said the volume of trade eased and demand for the peso tempered as the foreign exchange market felt downbeat following the Lenten break.

Last Wednesday, the last trading day before the break, the market was lifted by the announcement that Fitch Ratings gave the Philippines its first investment grade from a major international ratings firm.

Traders said fund owners would look for fresh leads in the coming days to guide their investment decisions.

source: business.inquirer.net