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EMERGING MARKETS-Chinese yuan, Indonesian rupiah jump as dollar weakness boosts Asian FX

Published 05/10/2021, 04:28 PM
Updated 05/10/2021, 04:30 PM
© Reuters.

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA
* Chinese yuan hits highest since June 15, 2018
* Taiwan dollar trades just shy of 24-year high
* Indonesian rupiah on track for best day since Jan. 4
* India 10-yr bond yields up; calls for nation-wide lockdown
grow

By Rashmi Ashok
May 10 (Reuters) - Most Asian currencies rose against the
dollar on Monday, with the Indonesian rupiah and Chinese yuan
making significant advances, as weak U.S. jobs data weighed on
the greenback on hopes that interest rates would remain low for
longer.
Data released on Friday showed U.S. job growth in April
missed expectations by a wide margin, quelling worries that a
pickup in inflation could force the Federal Reserve to raise
interest rates earlier than outlined.
Higher U.S. rates typically make the dollar an attractive
investment over riskier high-yielding assets, denting inflows
into Asian markets.
China's onshore yuan CNY=CFXS rose 0.1% to its highest
since June 15, 2018 at 6.423 per dollar and recovered all its
losses booked this year, fuelling speculation that the central
bank may step in to cool its rapid ascent. Data on Friday showed exports beating forecasts in April,
building on a raft of prints pointing to a strong economic
recovery.
Indonesia's rupiah IDR=ID rose 0.8% to 14,160 against the
dollar and was on track for its best session since Jan. 4, as
recent data indicated an economic recovery was likely.
"Tentative signs of recovery in portfolio flows are setting
in. Month-to-date inflows into equities and sovereigns are at
$71.4 million as of May 7, and $100.6 million as of May 6,
respectively," Maybank analysts wrote in a client note.
Benchmark 10-year bond yields in Indonesia ID10YT=RR fell
nearly 5 basis points to 6.394% as investor demand rose, with
yields at their lowest since Feb. 18. Equities .JKSE added
0.8%.
The Taiwan dollar TWD=TP traded 0.4% higher, slightly shy
off the 27.74 per dollar mark it touched earlier in the day that
was also its highest since May 20, 1997.
The currency took support from data released late on Friday
that showed the island's April exports jumped 38.7%, smashing
expectations.
While dollar weakness helped keep the Indian rupee INR=IN
steady, broader sentiment remained weak, with bond markets
showing the pressure. Ten-year bond yields IN10YT=RR rose to
6.03%, a near one-week high.
Calls to impose a nationwide lockdown have been growing amid
a rapid rise in coronavirus cases, and several states have
already entered lockdowns, which has led economists to cut
growth expectations for Asia's third-largest economy. .BO
Philippine's peso PHP= traded 0.2% lower ahead of
first-quarter gross domestic product data, which is expected to
show a contraction in the economy when it is released on
Tuesday.
A Reuters poll showed analysts expect the country's central
bank to keep rates at a record low in its Thursday meeting, as a
slow vaccination drive and ongoing wave of infections continue
to pressure the economy. ** In the Philippines, top index gainers are GT Capital
Holdings Inc GTCAP.PS up 5.39% and Robinsons Land Corp
RLC.PS up 4.73%
** Indonesian 3-year benchmark yields are down 2.1 basis
points at 5.021%​​
** Top gainers on the Jakarta stock index .JKSE include
Trimitra Prawara Goldland Tbk PT ATAP.JK up 34.82% and Martina
Berto Tbk PT MBTO.JK up 34.55%


Asia stock indexes and
currencies at 0733 GMT
COUNTRY FX RIC FX FX INDE STOCKS STOCK
DAILY YTD % X DAILY S YTD
% % %
Japan JPY= -0.40 -5.32 <.N2 0.55 7.56
25>
China S> EC>
India INR=IN +0.16 -0.44 <.NS 0.84 6.91
EI>
Indones IDR= +0.60 -1.09 <.JK 0.73 -0.13
ia SE>
Malaysi MYR= +0.05 -2.14 <.KL -0.23 -2.66
a SE>
Philipp PHP= -0.19 +0.31 <.PS 0.94 -11.5
ines I> 2
S.Korea C> 11>
Singapo SGD= -0.12 -0.41 <.ST -0.46 12.01
re I>
Taiwan TWD=TP +0.33 +2.40 <.TW -0.29 16.99
II>
Thailan THB=TH +0.13 -3.73 <.SE 0.12 9.49
d TI>

 

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