MENU

Published on 1/10/2019 3:30:06 PM | Source: Reuters

Most Asian units slip; South Korean won drops the most on bleak data

Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel  https://t.me/InvestmentGuruIndia 

Download Telegram App before Joining the Channel

By Shreya Mariam Job

Most Asian currencies edged lower against a stronger dollar on Tuesday, with the South Korean won weakening the most after dismal inflation and exports data stoked bets of further monetary policy easing.

The U.S. dollar rose to its highest in more than two years versus a basket of currencies ahead of data forecast to show the U.S. manufacturing sector returned to growth.

The dollar strength weighed on most Asian currencies in thin trade, with markets in China closed for the rest of the week for holidays.

The won dropped 0.3%, its biggest intraday percentage fall in over a week, as bleak economic readings reinforced the view that the trade-reliant economy would continue to show weakness against the backdrop of a bruising trade war and fears of a global slowdown.

"We think the BoK (Bank of Korea) will cut interest rates by a further 50bp, with one cut this month and another in January next year," research firm Capital Economics said in a note.

The Singapore dollar slid 0.2%.

The city-state's central bank is expected to ease monetary policy at its semi-annual meeting slated to be held no later than Oct. 14, according to a Reuters poll.

The Indonesian rupiah slipped marginally after data earlier in the day showed that country's annual inflation rate slowed in September and was within the central bank's target range.

"With inflation contained and Bank Indonesia keen to support growth, further monetary policy easing looks likely," ANZ Research said.

The Indian rupee firmed as much as 0.2%. The country's central bank on Monday said the country's current account deficit narrowed to 2% of gross domestic product in the June quarter from 2.3% in the same period a year ago.

The Philippine peso declined 0.2%, snapping a four-session winning streak.

The Philippine central bank on Monday had said that September annual inflation was likely to settle within 0.6%-1.4% range.

Bangko Sentral ng Pilipinas had cut its 2019 inflation forecast last week. Easing inflation has allowed the central bank to cut its benchmark interest rate three times this year in a bid to arrest slowing growth.

(Reporting by Shreya Mariam Job in Bengaluru; Editing by Aditya Soni)