Emerging markets: Philippines' peso and Thai baht weaken as most of Asia forex steadies


MANILA, Sept 27 (Reuters): Thailand's baht and the Philippine peso eased on Monday as fellow emerging Asian currencies eked out meagre gains against a broadly flat US dollar.

The Thai baht weakened 0.5% on Monday, playing catch up with peers that had eased while Thai markets were closed on Friday for a holiday.

The region's worst performing currency this year has lost more than 10% against the dollar.

Investors also digested weaker-than-expected export data from Southeast Asia's second-largest economy and looked ahead to the Bank of Thailand's policy meeting on Wednesday.

Poon Panichpibool, a strategist at Krung Thai Bank, said selling pressure will remain on the baht due to prolonged impact of recent Covid-19 outbreaks in Thailand.

"It will take quite some time to boost consumer confidence with hefty household debt and uncertainty about future outbreaks or lockdowns. Moreover, the delayed reopening of major cities for tourism should also limit economic recovery in near-term."

The tourism-reliant nation last week delayed to November plans to grant vaccinated visitors entry without quarantine, raised the public debt ceiling, and promised to ramp up vaccinations and stimulus measures.

The Philippine peso, which has depreciated more than 2.5% so far this month amid a burgeoning trade deficit, lost another half a percent and hit a fresh two-month low.

"The widening trade deficit and general winding down of financial account flows are two factors that will likely weigh (on the peso)," said Nicholas Mapa, a senior economist at Ducth bank ING. Data earlier this month showed the Philippines' trade deficit remained above $3 billion for a fourth consecutive month in July.

Markets were also cautious as they awaited updates on China Evergrande's debt crisis, though the slight uptick in risk sentiment helped stocks in Singapore hit a near three-week high.

Chinese shares dropped 1%, however, which weighed on other regional equities such as Indonesia and Malaysia. - Reuters

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Philippines , Peso , Thai , Baht , Weakening , Asia Forex , Steady

   

Next In Aseanplus News

Cambodian govt approves US$8.5 billion for 2022 annual spending, up 8.4%
Laos: Annual Vientiane boat racing festival cancelled amid Covid-19 outbreak
80% full vaccination main criterion to de-escalation plans in Brunei
Indonesian court rejects debt restructuring request against airline Garuda
Thailand announces reopening rules for tourism reboot
China can’t look to Singapore for a way to live with Covid-19, health economist says
Geely’s Lynk & Co car brand launches mid-size SUV, heads to Saudi Arabia and Kuwait
Hong Kong jobless rate drops to new low of 4.5 per cent since start of coronavirus pandemic on improved economy
Covid-19: 5,828 new cases bring total to 2,426,050
Miti: European investors make strong commitment to invest RM14.1bil in Malaysia

Others Also Read


Vouchers