April, 27(Agencies)—Most Asian currencies edged higher against a broadly weaker US dollar on Thursday where Thai baht benefitting from encouraging trade data.
Indonesian rupiah, Asia’s best performing currency so far this year, rose 0.5%, having been supported by portfolio investment inflows for several days.
Chinese yuan firmed after China’s industrial firms’ profits shrank at a slightly slower pace in January-March. But the decline remained in the double-digits as the economy struggled to fully recover despite the country’s exit from its zero-COVID policy.
The Indian rupee gained 0.1%, and the Thai baht firmed 0.2%.
Investors globally remained uncertain how much longer the US Federal Reserve will keep interests high though Fed funds futures are currently pricing in an 80% chance for a 25 basis points increase at the policy meeting next week.
Analysts at MUFG wrote that the firm baht was in part due to trade data showing exports contracted less than expected in March, as agriculture exports such as rice and sugar.
The commerce ministry said it was expecting some export growth for the full year.
Stocks in region also firmed, with equities in Jakarta , Manila, and Kuala Lumpur advancing between 0.1% and 0.4%.
Meanwhile, equities in Singapore slipped as much as 0.7% to their lowest in over three weeks, with property companies leading losses after Singapore raised taxes on private property purchases in a surprise move that includes a doubling of stamp duties for foreigners.
Shares of developer City Development fell 5.7% and UOL Group dropped 5%. “It remains to be seen whether this policy will have a meaningful impact on housing inflation in Singapore, and ultimately on MAS’ exchange rate policy,” MUFG analysts wrote.
South Korean won lost 0.4%, while shares were flat after a five-day losing streak.
won has lost 5.7% so far this year and is the worst performing currency in the region. Analysts at Maybank suggest that the recent export underperformance and concerns on the growth of semiconductor has been weighing on the won.
Pakistan Rupee Exchange Rate