SINGAPORE: Emerging Asian currencies slid on Monday after China's central bank cut interest rates and set its daily yuan guidance softer, underscoring expectations of further easing in the region to tackle slowing growth and deflationary pressure.
The People's Bank of China late on Saturday cut its
benchmark lending and savings rates by 25 basis points, days
before the annual meeting of the parliament, to support the
world's second largest economy as its momentum slows and
deflation risks rise.
Activity in China's factory sector edged up to a seven-month
high in February but export orders shrank and deflationary
pressures persisted, a private survey showed on Monday.
An official survey, which focuses on larger companies,
showed on Sunday that activity in China's factory sector
contracted for a second straight month in February.
The yuan fell to its weakest level since October
2012 after the central bank set the daily midpoint at the
weakest since early November.
"Don't fight PBOC. Join them," said Sean Yokota, head of
Asia strategy for Scandinavian bank SEB, in a research note.
"Short CNY, AUD, MYR, SGD and commodities," said Yokota,
referring to the yuan, the Australian dollar, the
Malaysian ringgit and the Singapore dollar.
Singapore's dollar fell as much as 0.3 percent to 1.3657 per
U.S. dollar, its weakest since August 2010, amid some
expectations that the city-state may ease monetary policy in
April to support growth.
The ringgit lost ground as lower oil prices underscored
concerns that sliding crude will hurt Malaysia's current account
surplus and widen fiscal deficit.
The Indonesia rupiah slid 0.6 percent to 12,995
against the greenback, its weakest since August 1998, as
investors awaited February inflation data later in the day.
South Korea's won fell after industrial output in
January posted its worst fall in six years and exports suffered
their biggest drop in two years.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0140 GMT
Currency Latest bid Previous day Pct Move
Japan yen 119.83 119.70 -0.11
Sing dlr 1.3646 1.3620 -0.19
Taiwan dlr 31.481 31.503 +0.07
Korean won 1103.60 1098.40 -0.47
Baht 32.39 32.32 -0.22
Peso 44.15 44.09 -0.14
Rupiah 12990.00 12920.00 -0.54
Rupee 61.83 61.83 +0.00
Ringgit 3.6260 3.6040 -0.61
Yuan 6.2730 6.2696 -0.05
Change so far in 2015
Currency Latest bid End prev year Pct Move
Japan yen 119.83 119.66 -0.15
Sing dlr 1.3646 1.3260 -2.83
Taiwan dlr 31.481 31.718 +0.75
Korean won 1103.60 1099.30 -0.39
Baht 32.39 32.90 +1.57
Peso 44.15 44.72 +1.29
Rupiah 12990.00 12380.00 -4.70
Rupee 61.83 63.03 +1.94
Ringgit 3.6260 3.4965 -3.57
Yuan 6.2730 6.2040 -1.10
- Reuters
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