Currencies

Thai baht slips, most Asian currencies subdued ahead of US CPI


EMERGING MARKETS-Thai baht slips, most Asian currencies subdued ahead of US CPI

Thai baht top loser in Asian FX

U.S CPI data awaited

Taiwan stocks hit another record high

By Archishma Iyer

April 9 (Reuters)Thailand’s baht led losses among subdued Asian currencies on Tuesday, as traders exercised caution ahead of this week’s U.S. inflation data and a flurry of regional central bank meetings.

The all-important U.S. CPI data scheduled for release on Wednesday will take centre-stage for global markets as bets on a U.S. interest rate cut have gradually been diminishing.

Traders are now seeing about a 50% chance of the Fed cutting rates in June, as against near 60% from last week, according to the CME’s FedWatch tool.

In Asia, the baht THB=TH lost as much as 0.4%. It is among the worst performing currencies in the region, having slumped about 6.7% this year. Stocks .SETI, however, rose 0.8%.

The Bank of Thailand, which meets on Wednesday, is likely to stay pat on rates for the third consecutive meeting, a Reuters poll showed, in the midst of middling economic growth and rising pressure from the government to slash rates.

The Thai PM had said that the central bank should cut rates by at least a quarter point in the upcoming meeting.

Southeast Asia’s No.2 economy is set to announce a host of property measures on Tuesday, in a bid to revive growth.

“Actual growth performance this year (for Thailand) is likely to be below potential,” Goldman Sachs analysts wrote.

“With below-potential growth and low inflation, we continue to expect the Bank of Thailand to cut policy rates three times this year,” they added.

Central banks in Singapore and South Korea are also due to meet this week, with analysts expecting the banks’ policy stances to remain unchanged.

Among other Asian assets, the South Korean won KRW=KFTC and stocks .KS11 traded marginally lower and down 0.3% respectively, ahead of legislative elections on Wednesday.

The Singapore dollar SGD= and the Malaysian ringgit MYR= were flat. However, the MSCI’s EM Asia Index .MIMS00000PUS rose as much as 0.8% to hit almost a month’s high.

Among Asian shares, stocks in Taiwan .TWII hit another record high, jumping as much as 1.7%, piggy-backing on Taiwan Semiconductor Manufacturing 2330.TW winning a $6.6 billion subsidy for advanced semiconductor production in Phoenix, Arizona.

Equities in Singapore .STI rose 0.7%, while those in Malaysia .KLSE and China .SSEC traded about 0.2% lower each.

Markets in Philippines and Indonesia were closed due to public holidays.

Elsewhere, the Israel shekel ILS= gained more than 2% on Monday after the central bank held interest rates steady.

HIGHLIGHTS:

** POLL-India inflation likely cooled in March, albeit slightly

** Analysts lower Argentina 2024 inflation view to 189% – cenbank poll

** Japan warns against excessive volatility as yen slides near fresh lows

Asia stock indexes and currencies at 0345 GMT

COUNTRY

FX RIC

FX DAILY %

FX YTD %

INDEX

STOCKS DAILY %

STOCKS YTD %

Japan

JPY=

-0.05

-7.11

.N225

0.49

18.15

China

CNY=CFXS

-0.05

-1.89

.SSEC

-0.15

2.27

India

INR=IN

+0.00

-0.13

.NSEI

0.00

4.30

Indonesia

IDR=

-2.81

.JKSE

0.19

Malaysia

MYR=

+0.00

-3.35

.KLSE

-0.22

7.00

Philippines

PHP=

-1.92

.PSI

4.51

S.Korea

KRW=KFTC

-0.13

-4.94

.KS11

-0.25

2.09

Singapore

SGD=

+0.00

-2.09

.STI

0.72

-0.03

Taiwan

TWD=TP

-0.02

-4.26

.TWII

1.66

15.76

Thailand

THB=TH

-0.07

-6.64

.SETI

0.98

-1.89

Reporting by Archishma Iyer in Bengaluru; Editing by Himani Sarkar



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