Asia Stay updated with Business News, Pakistan news, Current world news and latest world news with Business Recorder.. http://www.brecorder.com/markets/fxmm/asia.html Wed, 01 Oct 2014 05:51:59 +0000 SRA Framework 2.0 en-gb Australian dollar stung by soft retail data, weighs on NZ dollar http://www.brecorder.com/markets/fxmm/asia/198137-australian-dollar-stung-by-soft-retail-data-weighs-on-nz-dollar.html http://www.brecorder.com/markets/fxmm/asia/198137-australian-dollar-stung-by-soft-retail-data-weighs-on-nz-dollar.html imageWELLINGTON: The Australian dollar was pulled closer to this year's trough on Wednesday following a surprisingly weak retail sales figure, dragging the New Zealand dollar lower in the process.

The Aussie dropped 0.8 percent on the day to $0.8670 after retail sales rose a meager 0.1 percent in August, missing forecasts of 0.4 percent.

"U.S dollar strength was the dominant theme and the weak retail sales data didn't help," said Su-Lin Ong, senior economist at RBC Capital Markets.

It even fell against a wounded euro which had slipped overnight amid disappointing economic data in the euro zone.

The common currency leapt nearly a full cent to A$1.4537, pulling closer to a three-month peak of A$1.4588 touched Tuesday.

The Aussie was closing in on the 2014 low of $0.8660, a level of key support, and a breach would take it to its weakest in more than four years.

"It may take a bit of work to break it, but it seems inevitable," Ong added, seeing the next major level at $0.8320.

The Aussie has tumbled more than 6 percent in the past month amid a strengthening US dollar and sliding commodity prices.

Other data showed a marginal rise of 0.1 percent in Australian home prices in September following three months of strong gains.

The slowdown should actually be welcomed by the Reserve Bank of Australia which recently has become concerned that a surge in borrowing to buy investment properties could lift prices to unsustainable levels.

Renewed pressure on the Aussie weighed on its New Zealand neighbour, which dropped 0.6 percent on the day versus the greenback. It was last at $0.7766, not far from a 14-month low of $0.7708 touched Monday.

The next major test will come from the fortnightly dairy auction later on Wednesday.

Some hope global prices may be finding a bottom after their precipitous slide of around 45 percent since their peak in February.

"A weak figure here could see the NZ dollar dip back to its $0.7700 support, while an increase in dairy prices could see the kiwi looking toward $0.80," said ASB economist Christina Leung in a note.

The kiwi, which dropped 6.5 percent in September, finds strong support from a cluster of daily lows made in mid-2013 between $0.7670/80. New Zealand government bonds were firmer, with yields off 1.5 to 2.5 basis points. Australian government bond futures also edged up, with the three-year bond contract gaining 3 ticks to 97.290.

The 10-year contract added 2 ticks to 96.505.

Copyright Reuters, 2014
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rocking.saad.jabri@gmail.com (Saad Jabri) Asia Wed, 01 Oct 2014 04:27:44 +0000
Dollar breaks 110 yen for first time in six years http://www.brecorder.com/markets/fxmm/asia/198138-dollar-breaks-110-yen-for-first-time-in-six-years.html http://www.brecorder.com/markets/fxmm/asia/198138-dollar-breaks-110-yen-for-first-time-in-six-years.html imageTOKYO: The dollar broke the 110 yen barrier for the first time in more than six years on Wednesday, following a string of generally upbeat US data and expectations of more Bank of Japan monetary easing.

The greenback soared to 110.09 yen in late morning Tokyo trade, its highest level since August 2008 and up from 109.64 yen in New York, as investors turn their attention to a key US jobs report later this week.

The dollar has been rising against the yen and euro as the US Federal Reserve's stimulus tapering policy increasingly diverges with expectations for fresh easing moves by Japanese policymakers and the European Central Bank.

In other trading, the euro weakened to $1.2614 against $1.2631 in the US, while the single currency strengthened to 138.67 yen against 138.50 yen.

"Even after crossing the 110-line, the dollar-yen may gain a bit more," said Yuzo Sakai, manager of FX business promotion at Tokyo Forex & Ueda Harlow.

Hopes for an earlier-than-expected US interest rate hike have been drawing investors back to the dollar amid signs that a recovery in the world's number one economy was taking hold.

But the employment figures on Friday will be crucial to cementing that optimism after US consumer confidence fell for the first time in four months and weakness in Chinese manufacturing stoke renewed fears about the global economy.

The surprisingly weak US data came after the economy grew at the fastest pace since 2011 in the second quarter, expanding at an annualised rate of 4.6 percent, and reversing a contraction in the first three months of the year.

On Wednesday morning, the Bank of Japan released its Tankan quarterly business confidence survey which pointed to a sluggish improvement following a sharp drop in the prior quarter as a sales tax hike slammed the brakes on the world's number three economy.

The closely watched report came after separate figures this week pointed to poor industrial production and household spending in Japan following the April 1 levy hike to 8.0 percent from 5.0 percent -- the country's first in 17 years.

Weakness in Japan's economy has stoked expectations that the BoJ would be forced to launch more easing measures to counter the downturn.

Last year, the bank unleashed an unprecedented stimulus campaign last year as part of Tokyo's broader bid to resuscitate the long-laggard economy, following the sweeping election victory of Shinzo Abe.

Japan's new prime minister pledged to conquer the deflation that has plagued Japan's economy for years.

But the recent batch of sluggish data will likely "increase investor expectations that the BoJ will announce further monetary easing", said Toshihiko Matsuno, research head at SMBC Friend Securities.

Japan's central bank holds a monetary policy meeting next week.

Copyright AFP (Agence France-Presse), 2014

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parvezjabri@yahoo.com (Parvez Jabri) Asia Wed, 01 Oct 2014 04:24:48 +0000
Dollar breaks 110 yen for first time in six years http://www.brecorder.com/markets/fxmm/asia/198122-dollar-breaks-110-yen-for-first-time-in-six-years.html http://www.brecorder.com/markets/fxmm/asia/198122-dollar-breaks-110-yen-for-first-time-in-six-years.html imageTOKYO: The dollar broke the 110 yen barrier for the first time in more than six years on Wednesday, following a string of generally upbeat US data and expectations of more Bank of Japan monetary easing.

The greenback soared as high as 110.09 yen in late morning Tokyo trade, its highest level since August 2008 and up from 109.64 yen in New York, as investors turn their attention to a key US jobs report later this week.

The dollar has been rising against the yen and euro as the US Federal Reserve's stimulus tapering policy increasingly diverges with expectations for fresh easing moves by Japanese policymakers and the European Central Bank.

Hopes for an earlier-than-expected US interest rate hike have been drawing investors back to the dollar amid signs that a recovery in the world's number one economy was taking hold.

But the employment figures on Friday will be crucial to cementing that optimism after US consumer confidence fell for the first time in four months and weakness in Chinese manufacturing stoke renewed fears about the global economy.

On Wednesday morning, the Bank of Japan released its Tankan quarterly business confidence survey which pointed to a sluggish improvement following a sharp drop in the previous three months as a sales tax hike slammed the brakes on the world's number three economy.

The closely watched report came after separate figures pointed to poor industrial production and household spending in Japan following the April 1 levy hike to 8.0 percent from 5.0 percent -- the country's first in 17 years.

In other trading, the euro weakened to $1.2608 against $1.2631 in the US, while the single currency strengthened to 138.68 yen against 138.50 yen.

Copyright AFP (Agence France-Presse), 2014

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parvezjabri@yahoo.com (Parvez Jabri) Asia Wed, 01 Oct 2014 03:54:18 +0000
Sri Lanka rupee weaker on stock-related outflows, seen falling further http://www.brecorder.com/markets/fxmm/asia/198060-sri-lanka-rupee-weaker-on-stock-related-outflows-seen-falling-further.html http://www.brecorder.com/markets/fxmm/asia/198060-sri-lanka-rupee-weaker-on-stock-related-outflows-seen-falling-further.html imageCOLOMBO: The Sri Lankan rupee was weaker on Tuesday due to equity-related outflows and selling of government securities, but moral suasion by the central bank prevented sharp falls, dealers said.

The spot currency was quoted at 130.58/68 per dollar at 0721 GMT, weaker from Monday's close of 130.50/55.

However, dealers said the spot was not traded as the central bank asked banks not to trade above 130.43 per dollar and the forwards picked up as a result.

Three-day forwards or spot next was also quoted at 130.65/70 per dollar, weaker from Monday's close of 130.52/58.

"The spot is not trading. The rupee is weaker on equity outflows. But the central bank's moral suasion prevented a sharp depreciation," a dealer said.

Foreigners were net sellers of Lankan stocks on Monday, with outflows of 1.89 billion rupees ($14.5 million).

Currency dealers expect the rupee to weaken on the back of sustained foreign selling in government securities and higher imports in a low interest rates regime.

Some dealers said there was no dollar liquidity for imports.

The central bank could easily provide liquidity to facilitate foreign outflows from government securities as it absorbed those inflows, Governor Ajith Nivard Cabraal said on Monday.

Dealers said concerns over lower returns following the central bank's decision to limit bank deposits under its repo window have prompted some foreign investors to gradually pare their stakes in government securities.

They cited lower optimism for the currency's outlook after the central bank's decision last week to limit commercial banks' access to the standing deposit facility.

Sri Lanka's share index was up 0.16 percent, or 11.48 points at 7,249.64 at 0736 GMT.

Turnover was 3.48 billion rupees, with 48.5 million shares changing hands.

Copyright Reuters, 2014

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imad_kueconomist@yahoo.com (Imaduddin) Asia Tue, 30 Sep 2014 13:05:00 +0000
Most Asian currencies set for monthly loss, rupiah hits 8-month low http://www.brecorder.com/markets/fxmm/asia/198054-most-asian-currencies-set-for-monthly-loss-rupiah-hits-8-month-low.html http://www.brecorder.com/markets/fxmm/asia/198054-most-asian-currencies-set-for-monthly-loss-rupiah-hits-8-month-low.html imageSINGAPORE: The Indonesian rupiah hit its lowest level in nearly eight months on Tuesday and most Asian currencies were set for monthly losses, having taken a hit as investors position for an eventual rise in US interest rates.

The rupiah fell to as low as 12,230 versus the dollar , its lowest level since early February.

Asian currencies had a mixed day on Tuesday, with some getting a bit of a respite from recent selloff.

Still, most were on track for monthly losses, having come under pressure as investors positioned for the possibility that the US Federal Reserve could raise borrowing costs faster than expected once it starts raising interest rates, which many investors expect will begin in the second quarter of 2015.

The dollar has climbed 4.2 percent versus the rupiah in September, putting the Indonesian currency on track to becoming the worst performing emerging Asian currency this month.

In addition to the dollar's strength, the rupiah has been hit by concerns over political uncertainty.

The rupiah has extended its losses after Indonesia's parliament on Friday approved a measure ending direct elections for governors and mayors, a move president-elect Joko Widodo criticised as a "big step back" for democracy in the country.

Increases in US borrowing costs and bond yields can dampen the appeal of higher-yielding currencies and assets.

Amid the market's focus on the outlook for US monetary policy, market volatility is likely to persist, the Philippine central bank governor said.

"The volatility, the uncertainty are likely going to continue although the fundamentals are sound," Bangko Sentral ng Pilipinas Governor Amando Tetangco told Reuters.

"Again, our policy is going to be the same; we will allow the market to determine the (peso-dollar) exchange rate but we will always be there to ensure that we don't see excessive volatility in the exchange rate," Tetangco added.

Copyright Reuters, 2014

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imad_kueconomist@yahoo.com (Imaduddin) Asia Tue, 30 Sep 2014 12:54:30 +0000
China's yuan rebounds, offshore investors wary of Hong Kong unrest http://www.brecorder.com/markets/fxmm/asia/197936-chinas-yuan-rebounds-offshore-investors-wary-of-hong-kong-unrest.html http://www.brecorder.com/markets/fxmm/asia/197936-chinas-yuan-rebounds-offshore-investors-wary-of-hong-kong-unrest.html imageHONG KONG/SHANGHAI: China's yuan rebounded slightly against the dollar on Tuesday, but trading kept to a tight range as offshore investors were wary over continuing protests in Hong Kong and ahead of a holiday.

The Chinese currency fell in Hong Kong trading on Monday on nervousness over the pro-democracy protests. Although tens of thousands of protesters extended a blockade of Hong Kong streets on Tuesday, traders said it was having little direct impact so far.

The offshore yuan strengthened past the 6.17 per dollar line in early trades and held gains at 6.1656 by midday, up from Monday's close of 6.1782.

"We are still seeing some (U.S) dollar buying at the day's highs so it indicates that sentiment is still a bit cautious," said a trader at a European bank in Hong Kong.

Onshore yuan, which usually shows only muted reaction to offshore events, rose to 6.1457 per dollar from Monday's close of 6.1501, buoyed by a slightly strong official midpoint set by the central bank at 6.1525 against Monday's 6.1539.

The Hong Kong market will be closed on Wednesday and Thursday, while the mainland markets will be closed until Oct 7 for China's National Day holiday.

Underscoring investor nervousness, trading in the Hong Kong dollar remained hectic and volatile with the currency moving in a broad 7.7617-7.7693 broad range, traders said.

Hong Kong shares extended their falls, sliding 1.2 percent by midday after declining 1.9 percent on Monday on the protests.

For the quarter, the onshore yuan is set to appreciate 1 percent, buoyed by China's importing exports and heavy trade surpluses.

But given a slew of weak economic data, traders expect Beijing may allow the yuan to depreciate again in coming months after a round of depreciation in the first four months of this year.

Copyright Reuters, 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Asia Tue, 30 Sep 2014 05:40:50 +0000
Dollar slips but set to end September with solid gains http://www.brecorder.com/markets/fxmm/asia/197932-dollar-slips-but-set-to-end-september-with-solid-gains.html http://www.brecorder.com/markets/fxmm/asia/197932-dollar-slips-but-set-to-end-september-with-solid-gains.html imageTOKYO/SYDNEY: The dollar took a breather on Tuesday from its recent rally but was still not far from four-year peak against a basket of major currencies, and could be on track to post its biggest monthly gain in over a year.

The dollar index last stood at 85.544, not far from an overnight peak of 85.798 - a high not seen since July 2010. Its monthly gain of more than 3 percent could put it on track for the largest since February 2013.

Some analysts cautioned that its three-month long rally was at risk of running out of steam for now, particularly against the yen. "It's really hard to pick a bottom, but it does look to us like it's gone a little too far, and has overshot," said Sue Trinh, senior currency strategist at RBC Capital Markets in Hong Kong.

"It's like trying to catch a falling knife, in terms of the other currencies at the moment, and bear in mind it's month-end, quarter-end, and, for the Japanese, half-year end, too, so flows tend to be a little more noisy than usual around that period," she said.

The dollar scaled a fresh six-year high of 109.75 yen on Monday and last traded at 109.30 yen, down about 0.2 percent but up nearly 5 percent for the month.

Investors continued to warily watch developments in Hong Kong, where tens of thousands of pro-democracy protesters extended a blockade of Hong Kong streets on Tuesday, stockpiling supplies and erecting makeshift barricades ahead of what some fear may be a push by police to clear the roads before China's National Day.

RALLY'S ROOM TO RUN?

Over the past three months, the dollar index has surged more than 7 percent, driven in part by expectations the Federal Reserve will start to hike interest rates well ahead of its European and Japanese counterparts. Data on Monday showing US consumer spending accelerated in August supported the upbeat outlook for the US economy.

US Treasury yields have risen in line with the gradually improving US economy, with the two-year yield nearing 0.6 percent, a high not seen since May 2011.

That in turn has bolstered the appeal of the dollar against its lower-yielding peers.

The euro came within a whisker of its November 2012 trough of $1.2661 on Thursday before edging back to $1.2695, up about 0.1 percent on the day.

Some analysts said the dollar's rally still had room to run, as the key US nonfarm payrolls report on Friday will likely underscore that the US economic recovery has enough momentum for the Fed to hike interest rates sooner rather than later.

Bank of America Merrill Lynch revised its end-2015 dollar forecast to 115 yen from 112 yen, citing the likelihood of the Fed raising US rates sooner than expected, strong outflows as Japanese investors rebalance portfolios and the disappointing pace of Japanese export recovery.

"Divergence in monetary policy between the Fed and BOJ should result - as it has resulted - in more foreign security investments as part of Japan's portfolio rebalancing," Shusuke Yamada, chief Japan FX strategist at BAML in Tokyo, said in a report.

Euro zone inflation data due later on Tuesday will be closely watched by euro bears, but a bigger-than-expected rise in Germany's annual inflation could potentially help keep the euro zone rate stable.

The New Zealand dollar, down around 6.5 percent this month, was one of the worst performing major currencies in September.

Data on Monday confirming the Reserve Bank of New Zealand had intervened to weaken the currency proved the central bank could talk the talk and walk the walk.

The kiwi last stood at $0.7805, recovering about 0.5 percent on the day, having plumbed a near 14-month low of $0.7708 on Monday.

Its Australian peer has similarly fared poorly, suffering a drop of more than 6 percent this month, a vicious turnaround for a currency that had been trading in a remarkably stable 92-95 cent range. The Aussie fell out of favour as market volatility picked up following the end of the summer lull and as carry trades lost their lustre.

China's patchy economic growth and further declines in the price of iron ore, Australia's biggest export earner, then become excuses for selling the Aussie.

Momentum sellers joined the fray as key chart support levels gave way, handing the currency a one-way ticket to its 2014 trough of $0.8660 set in January.

The Aussie fell as far as $0.8682 on Monday but last recovered about 0.5 percent on the day to buy $0.8758.

Copyright Reuters, 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Asia Tue, 30 Sep 2014 05:36:10 +0000
Dollar eases ahead of data release, eyes on Hong Kong http://www.brecorder.com/markets/fxmm/asia/197905-dollar-eases-ahead-of-data-release-eyes-on-hong-kong.html http://www.brecorder.com/markets/fxmm/asia/197905-dollar-eases-ahead-of-data-release-eyes-on-hong-kong.html imageTOKYO: The dollar dipped in Asian trade Tuesday after enjoying a recent rally, with investors awaiting the release of key US data this week, while they are also keeping tabs on protests in Hong Kong that have shut parts of the city.

The greenback was changing hands at 109.24 yen, down from 109.45 yen in New York late Monday, while the euro fetched $1.2695 compared with $1.2686.

And the single currency was also at 138.70 yen, against and 138.87 yen.

A string of impressive indicators out of Washington in recent weeks have fuelled hopes the US economy is back on track and increasing the likelihood the Federal Reserve will hike interest rates sooner than later.

However, traders have stepped back ahead of the release of a raft of data through the week that culminates with Friday's US jobs report for September.

However, analysts said the dollar could resume its uptrend if a September consumer confidence survey, expected later in the global day, edges higher, Credit Agricole said in a statement.

Eyes are also on events in Hong Kong, where a demonstration has moved into a third day, keeping parts of the financial hub shut down.

Tens of thousands of people turned main thoroughfares into street parties on Monday night, with the mood turning festive just a day after riot police fired tear gas in ugly clashes.

"Hong Kong will no doubt be a major (focus of) attention for now with the markets likely more sensitive to any downside surprises," National Australia Bank said in a note to clients.

The Hong Kong dollar was at 7.7652 to one US dollar, around a six-month low. The currency is pegged to the greenback and is permitted to trade in a HK$7.75-HK$7.85 range.

The euro may get a temporary boost if eurozone inflation shows an upturn when data is released later in the day, Credit Agricole said.

But Junichi Ishikawa, market analyst at IG Securities, said the euro could fall below $1.26 if inflation comes in weak again as it could lead to further monetary easing measures by the European Central Bank.

Japanese figures showing factory output saw a surprise drop and household spending kept falling in August failed to make an impact on currency markets.

Copyright AFP (Agence France-Presse), 2014

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parvezjabri@yahoo.com (Parvez Jabri) Asia Tue, 30 Sep 2014 04:10:16 +0000
Indonesia's central bank intervenes in market to stem volatility in rupiah http://www.brecorder.com/markets/fxmm/asia/197806-indonesias-central-bank-intervenes-in-market-to-stem-volatility-in-rupiah.html http://www.brecorder.com/markets/fxmm/asia/197806-indonesias-central-bank-intervenes-in-market-to-stem-volatility-in-rupiah.html imageJAKARTA: Indonesia's central bank said on Monday it intervened in the foreign exchange market by injecting dollars to stem volatility in the rupiah.

"Bank Indonesia will not allow large fluctuation of rupiah by adding US dollar supply to the market," Mirza Adityaswara, senior deputy governor of Bank Indonesia, told Reuters.

The rupiah was traded at 12,165 to the dollar, a seven-month low, due to political uncertainty and in response to the US dollar's broad strength.

Copyright Reuters, 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Asia Mon, 29 Sep 2014 13:29:41 +0000
Indian rupee falls as dollar surges against Asia FX http://www.brecorder.com/markets/fxmm/asia/197805-indian-rupee-falls-as-dollar-surges-against-asia-fx.html http://www.brecorder.com/markets/fxmm/asia/197805-indian-rupee-falls-as-dollar-surges-against-asia-fx.html imageMUMBAI: The Indian rupee fell on Monday in a volatile session after an upward revision in US quarterly growth data raised concerns about earlier-than-expected interest rate hikes there, while caution also prevailed ahead of the central bank's policy review.

The Reserve Bank of India is widely expected to keep interest rates on hold on Tuesday, with investors more focused on what tone it will adopt about future moves.

Although the central bank's commitment to fight inflation has sparked a rally in Indian markets, traders also warn an excessively hawkish tone could also raise concerns that any fight to curb prices would come at the expense of economic growth.

"We do not expect any big announcements in the policy review tomorrow," said Vishweshwara M., assistant general manager, treasury, at Karnataka Bank in Mumbai. "Having said that we expect the dollar-rupee to stabilise at these levels, with the next resistance around 61.60/70."

The partially convertible rupee ended at 61.53/54 per dollar compared with Friday's close of 61.14/15. It fell to 61.62 on Monday, matching the 1-1/2 month low hit on Friday. The falls on Monday erased the rally in the previous session after Standard & Poor's raised its outlook on India's credit rating to "stable" from "negative".

Emerging Asian currencies weakened on Monday after an estimate showed the US economy grew 4.6 percent in its second quarter, faster than the initially estimated 4.2 percent, raising fears of earlier-than-expected rate hikes.

Currencies were also hit by tensions in Hong Kong after clashes between pro-democracy supporters and police in one of the biggest political challenges for Beijing since the Tiananmen Square crackdown 25 years ago.

Dollar demand from oil and other importers to meet month-end import commitments also pressured the rupee, dealers said.

In the offshore non-deliverable forwards, the one-month contract was at 61.95, while the three-month was at 62.58.

Copyright Reuters, 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Asia Mon, 29 Sep 2014 13:28:49 +0000