S.Korea won rallies, most other Asian currencies rise slightly

Reuters

S.Korea won rallies, most other Asian currencies rise slightly

25. Jun. 2024 um 4:54 vorm. GMT

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South Korean stocks gain 0.6%

Malaysia core consumer price index ahead of forecast

Traders eye US presidential debate and PCE data

By Rajasik Mukherjee

June 25 (Reuters) -Most Asian currencies posted modest gains against the dollar on Tuesday as investors awaited key U.S. events later in the week, with the South Korean won rising after four days in the red, while the Chinese yuan eased to a fresh seven-month low.

Equities in the region were mixed, with shares in Indonesia .JKSE losing as much as 0.7% while those in Taiwan .TWII extended losses into a third straight session, down as much as 1.4% to touch a more than one-week low.

Stocks in Manila .PSI rose as much as 0.5%, while equities in Thailand .SETI ticked higher.

The South Korean won KRW=KFTC, which soared last week aided by the surge in chipmakers led by Nvidia, gained as much as 0.4%, while stocks in Seoul .KS11 added as much as 0.6%.

The Chinese yuan CNY=CFXS dropped to a seven-month low of 7.2630 per dollar in morning trade, on track for its sixth straight monthly decline in June if the trend holds, as the country's central bank continued to guide the official fixing weaker.

Meanwhile, investors remain cautious ahead of the first U.S. presidential debate on Thursday and the release on Friday of the U.S. personal consumption expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge.

Weak inflation data would likely reinforce market bets on a Fed rate cut as early as September, which futures currently price as a 65% prospect. MKTS/GLOB

"A plethora of economic and political factors could challenge USD dominance. But categorically taming the USD will be hard," Vishnu Varathan, chief economist for Asia ex-Japan at Mizuho Bank, wrote in a note.

Malaysia's ringgit MYR= remained unchanged after its data showed inflation for May came in slightly above the forecast.

"The MYR (Malaysian ringgit) has been exhibiting strong resilience relative to many of its regional peers in recent times," Maybank analysts wrote in a note.

"It may continue to trade around its recent range of 4.6800 – 4.7200 in the near term."

Among other Asian currencies, the Indonesian rupiah IDR=, one of the most depreciating currencies of the year, traded flat while shares in the country .JKSE declined 0.7%, eyeing their worst day in over a week.

The Thai baht THB=TH, Singapore dollar SGD= and Taiwanese dollar TWD=TP all remained largely unchanged.

In the Philippines, the peso PHP= traded flat ahead of the central bank's policy meeting on Thursday where it is expected to keep its key interest rate unchanged for a sixth consecutive meeting, a Reuters poll showed.

HIGHLIGHTS:

** Indonesian 10-year benchmark yields rise to 7.113%

** Thai c.bank sees current interest rate 'robust to many scenarios'

** Dollar flirts with key 160 yen level as intervention risk looms

** Japan to respond appropriately to excessive yen volatility, official says

Asia stock indexes and currencies at 0334 GMT
COUNTRY	FX RIC	FX DAILY %	FX YTD %	INDEX	STOCKS DAILY %	STOCKS YTD %
Japan	JPY=	+0.13	-11.50	.N225	+0.5	+16.5
China	CNY=CFXS	+0.00	-2.23	.SSEC	-0.37	-0.77
India	INR=IN	-0.01	-0.31	.NSEI	0.00	8.31
Indonesia	IDR=	+0.09	-5.98	.JKSE	-0.39	-5.65
Malaysia	MYR=	+0.13	-2.40	.KLSE	0.19	9.49
Philippines	PHP=	+0.11	-5.68	.PSI	0.24	-2.52
S.Korea	KRW=KFTC	+0.16	-7.12	.KS11	0.48	4.62
Singapore	SGD=	+0.07	-2.40	.STI	0.16	2.45
Taiwan	TWD=TP	-0.07	-5.19	.TWII	-0.33	26.82
Thailand	THB=TH	+0.03	-6.63	.SETI	0.26	-6.75