Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

EMERGING MARKETS-Rupiah hurt by rate cut, bond outflows on dour economic outlook

Published 02/19/2021, 01:04 PM
Updated 02/19/2021, 01:10 PM
© Reuters.

* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
* Indonesia benchmark bond yields up ~34 bps this week
* Rupiah at 3-week low
* Singapore shares drop 1%
* Indian currency markets shut

By Anushka Trivedi
Feb 19 (Reuters) - The Indonesian rupiah led losses among
Asian currencies on Friday, a day after the country's central
bank cut interest rates and trimmed the 2021 growth forecast,
with rising U.S. yields sparking bond outflows to weigh on the
currency.
Benchmark U.S. Treasury yields US10YT=RR returned to a
near one-year high level hit earlier this week, which has
pressured riskier Asian stocks and currencies across the board.
Despite a weaker greenback USD= , the Singapore dollar
SGD= , South Korean won KRW=KFTC and the Philippine peso
PHP= all declined between 0.1% to 0.2%.
The rupiah IDR= fell 0.4% to a three-week low, while local
stocks .JKSE slid, both on track for weekly losses as a
debilitating wave of COVID-19 infections caused Bank Indonesia
to trim rates by 25 basis points (bps) and downgrade the
economic outlook on Thursday. "The 2021 growth outlook was lowered...which is quite
disappointing, but rupiah may continue to focus on external
factors," said Daniel Dubrovsky, a strategist at trading
platform IG.
"Rising longer-term rates in the world's largest economy may
gradually slow the path for appreciation in the rupiah."
Indonesia's bonds, a foreign investor favourite, lost some
sheen with 10-year benchmark yields ID10YT=RR rising 5.1 bps
to 6.583%, their highest since November 5.
The bonds yields have jumped almost 34 bps so far this week.

Meanwhile, Philippine .PSI and Malaysia shares .KLSE
edged up after two sessions of heavy losses, while Singapore's
index .STI slumped 1.3%.
South Korea equities .KS11 continued their descent for
third day on recent jump in coronavirus cases, giving up most of
their vaccine-fuelled rally gains earlier this week. KRW/
Indian currency markets INR=IN were closed for a holiday,
while shares .NSEI fell 0.5% on profit-taking. .BO

HIGHLIGHTS
** Rupiah down about 1.1% since Tuesday
** Top losers on the Singapore STI .STI include: Jardine
Matheson Holdings Ltd JARD.SI down 2.9% and Keppel DC REIT
KEPE.SI down 2.1%
** Top losers on the Jakarta stock index .JKSE include
Planet Properindo Jaya PT PLAN.JK down 9.7% and MNC Land Tbk
PT KPIG.JK down 7%
Asia stock indexes and currencies at 0433
GMT
COUNTRY FX RIC FX DAILY FX YTD % INDEX STOCKS DAILY % STOCKS YTD %
%
Japan JPY= -0.01 -2.30 .N225 -1.16 8.89
China CNY=CFXS +0.27 +0.88 .SSEC -0.32 5.49
India INR=IN 0.00 +0.57 .NSEI -0.19 7.92
Indonesia IDR= -0.43 -0.21 .JKSE -0.40 3.29
Malaysia MYR= -0.05 -0.54 .KLSE 0.17 -2.99
Philippines PHP= -0.04 -0.91 .PSI 0.59 -3.50
S.Korea KRW=KFTC -0.07 -2.00 .KS11 -0.42 6.97
Singapore SGD= -0.12 -0.50 .STI -1.28 0.98
Taiwan TWD=TP +1.39 +1.94 .TWII -0.68 10.73
Thailand THB=TH -0.03 -0.20 .SETI -0.89 3.33

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.