AsiaStay updated with Business News, Pakistan news, Current world news and latest world news with Business Recorder..http://www.brecorder.com/markets/fxmm/asia.htmlThu, 31 Jul 2014 05:21:17 +0000SRA Framework 2.0en-gbDollar flat in Asia ahead of key data, Fed meetinghttp://www.brecorder.com/markets/fxmm/asia/186095-dollar-flat-in-asia-ahead-of-key-data-fed-meeting.htmlhttp://www.brecorder.com/markets/fxmm/asia/186095-dollar-flat-in-asia-ahead-of-key-data-fed-meeting.htmlimageTOKYO: The dollar moved narrowly in Asia Monday as simmering geopolitical tensions capped activity while investors look to a slate of US data and a Federal Reserve policy meeting later this week.

In Tokyo afternoon trade, the greenback was quoted at 101.80 yen, slightly down from 101.83 yen in New York Friday.

The euro was also flat at $1.3429 and 136.73 yen, against $1.3430 and 136.76 yen, as a closely watched survey showed that concerns over crises in the Ukraine and Middle East dented German business confidence this month.

Currency traders will be keeping an eye on releases from the United States -- including jobs and GDP figures -- that are expected to show the world's number one economy gaining strength as the central bank exits its stimulus drive.

"There will be plenty for investors to digest in the days ahead and we expect the releases to again show strong momentum in the US," Credit Agricole said.

"The US dollar is unlikely to extend its gains ahead of Friday's non-farm payrolls," it added.

Tensions around the jet crash in Ukraine have kept some investors on the sidelines.

Because of heavy shelling in the area observers from the Organization for Security and Cooperation in Europe (OSCE) have been unable to access the site where Malaysia Airlines Flight MH17 came down on July 17, killing 298 people.

On Sunday, Russia accused the US of hindering the OSCE's work in Ukraine, while the Netherlands scrapped plans for an armed international mission to secure the area.

Moscow has accused the US of supporting Kiev against separatist rebels in eastern Ukraine and of "sharing the responsibility of spilt blood" in the conflict.

The United States and Europe accuse Moscow of supporting the insurgents, and claim a Russian-made missile was used to shoot down MH17.

US President Barack Obama has called for an immediate ceasefire in Gaza, after Israel and Hamas ignored calls for a truce and the raging conflict entered its third week Monday.

The dollar was mixed against other Asia-Pacific currencies.

It eased to 11,577.50 Indonesian rupiah from 11,578 rupiah on Friday, to 31.83 Thai baht from 31.87 baht, and to 60.10 Indian rupees from 60.11 rupees. It also weakened to Tw$29.97 from Tw$30.00.

The greenback firmed to 43.31 Philippine pesos from 43.30 pesos, to Sg$1.2417 from Sg$1.2414, and to 1,026.20 South Korean won from 1,026.15 won.

The Australian dollar fell to 93.92 US cents from 94.07 cents, while the Chinese yuan was higher at 16.46 yen against 16.40 yen.

Copyright AFP (Agence France-Presse), 2014

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parvezjabri@yahoo.com (Parvez Jabri)AsiaMon, 28 Jul 2014 07:29:57 +0000
China's yuan rises as positive economic data offsets weak midpoint http://www.brecorder.com/markets/fxmm/asia/186086-chinas-yuan-rises-as-positive-economic-data-offsets-weak-midpoint.htmlhttp://www.brecorder.com/markets/fxmm/asia/186086-chinas-yuan-rises-as-positive-economic-data-offsets-weak-midpoint.htmlimageSHANGHAI: China's yuan strengthened against the dollar on Monday, as better-than-expected economic data offset a weaker central bank midpoint fixing, traders said, as the spot market continued to push the traded rate closer to the midpoint.

Spot yuan stood at 6.1870 per dollar by midday, up 0.07 percent from last Friday's close, only 0.4 percent away from the midpoint, the closest the spot market and the midpoint have been since mid-March.

The People's Bank of China (PBOC) set its official midpoint weaker for the fourth day on Monday, at 6.1622 per dollar, down 0.04 percent from last Friday.

The central bank widened the trading band -- the range within which the spot rate may trade away from the midpoint on any given day -- to 2 percent from 1 percent on March 15, after putting the currency on a sharp depreciation trend.

That helped flush speculators out of the market but also made traders highly conservative, with the spot rate trading consistently far weaker than the midpoint ever since.

However, while the yuan has been appreciating steadily since July 21, traders don't believe the PBOC is ready to tolerate another major rally; thus the spot rate has grown closer to the midpoint because it has been held relatively flat in recent weeks in the face of developments.

"Better-than-expected HSBC preliminary PMI data helps boost the yuan, but the central bank doesn't want the currency to appreciate too fast," said a trader at a Australian bank in Shanghai.

China's factory sector turned in its best performance in five months in May, a preliminary HSBC survey showed last Thursday.

"The yuan has broken the psychologically key 6.20 level and it will float in the range of 6.18 to 6.20 in the short term if a trend of appreciation can be established," the trader said.

"The PBOC is unlikely to intervene as obviously as it did in the past."

Copyright Reuters, 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui)AsiaMon, 28 Jul 2014 04:31:29 +0000
Dollar flat in Asia ahead of key data, Fed meeting http://www.brecorder.com/markets/fxmm/asia/186079-dollar-flat-in-asia-ahead-of-key-data-fed-meeting.htmlhttp://www.brecorder.com/markets/fxmm/asia/186079-dollar-flat-in-asia-ahead-of-key-data-fed-meeting.htmlimageTOKYO: The dollar moved narrowly in Asia Monday as simmering geopolitical tensions capped activity while investors look to a slate of US data and a Federal Reserve policy meeting later this week.

In Tokyo late morning trade, the greenback was quoted at 101.80 yen, slightly down from 101.83 yen in New York Friday.

The euro was also flat at $1.3431 and 136.75 yen, against $1.3430 and 136.76 yen, as a closely watched survey showed that concerns over crises in the Ukraine and Middle East dented German business confidence this month.

Currency traders will be keeping an eye on releases from the United States that is expected to show the world's number one economy gaining strength as the central bank pulls exits a year-long stimulus drive.

"There will be plenty for investors to digest in the days ahead and we expect the releases to again show strong momentum in the US," Credit Agricole said.

"The US dollar is unlikely to extend its gains ahead of Friday's non-farm payrolls, " it added.

Tensions around the jet crash in Ukraine have kept some investors on the sidelines.

Because of heavy shelling in the area observers from the Organization for Security and Cooperation in Europe (OSCE) have been unable to access the site where Malaysia Airlines Flight MH17 came down on July 17, killing 298 people.

On Sunday, Russia accused the US of hindering the OSCE's work in Ukraine, while the Netherlands scrapped plans for an armed international mission to secure the area.

Moscow has accused the US of supporting Kiev against separatist rebels in eastern Ukraine and of "sharing the responsibility of spilt blood" in the conflict.

The United States and Europe accuse Moscow of supporting the insurgents, and claim a Russian-made missile was used to shoot down MH17.

US President Barack Obama has called for an immediate ceasefire in Gaza, after Israel and Hamas ignored calls for a truce and the raging conflict entered its third week Monday.

Copyright AFP (Agence France-Presse), 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui)AsiaMon, 28 Jul 2014 03:57:21 +0000
Indian rupee edges up but snaps two-week gaining streakhttp://www.brecorder.com/markets/fxmm/asia/185762-indian-rupee-edges-up-but-snaps-two-week-gaining-streak.htmlhttp://www.brecorder.com/markets/fxmm/asia/185762-indian-rupee-edges-up-but-snaps-two-week-gaining-streak.htmlimageMUMBAI: The Indian rupee ended marginally higher on Friday, as heavy dollar demand from importers to meet month-end commitments was offset by greenback sales from custodian banks, continuing a pattern of largely range-bound trading.

Still, the rupee fell 0.3 percent for the week, posting its first weekly loss in three in a week dominated by flows rather than major events or factors.

Traders said they will continue to monitor movements in other Asian currencies and moves in domestic shares for clues in the near-term.

"There were some heavy dollar inflows with custodian banks which helped offset the demand from oil firms and other importers," said Vikas Babu Chittiprolu, a senior foreign exchange dealer with state-run Andhra Bank.

"Geopolitical tensions will be the key trigger to watch out for as there are no other factors internally.

The 59.80 to 60.50 range will continue to hold." The partially convertible rupee closed at 60.1025/1125 per dollar, compared with 60.12/13 on Thursday.

The unit hit 59.98 on Thursday, its strongest since July 14.

Traders broadly expect the unit to hold in a range of 59.60 to 60.50 next week.

The rupee continues to be supported by good foreign buying in Indian shares and debt markets, although that was offset by importer demand for dollars.

India's broader NSE index fell on Friday after hitting a record high for a third consecutive session on profit-taking in blue-chips.

In the offshore non-deliverable forwards, the one-month contract was at 60.26 while the three-month was at 60.74.

Copyright Reuters, 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui)AsiaFri, 25 Jul 2014 12:00:02 +0000
Euro digs in after rebounding from lowshttp://www.brecorder.com/markets/fxmm/asia/185722-euro-digs-in-after-rebounding-from-lows.htmlhttp://www.brecorder.com/markets/fxmm/asia/185722-euro-digs-in-after-rebounding-from-lows.htmlimageTOKYO: The euro held firm against the dollar and yen on Friday after bouncing back from multi-month lows in the previous session in response to upbeat manufacturing data.

The news out of Europe added an upbeat outlook fuelled by a surge in an index that gauges the manufacturing sector in China, the world's number two economy.

The single currency bought $1.3464 in Tokyo, the same rate in New York late Thursday, while fetching 137.04 yen from 137.07 yen in New York.

It had sunk to an eight-month low of $1.3445 and a five-month low of 136.45 yen in Asia earlier Thursday on concerns about the effect of sanctions on Russia -- a key eurozone energy supplier -- over its links to Ukrainian rebels accused of shooting down MH17 last week.

However, it rallied after private research firm Markit said its purchasing managers index (PMI) jumped in July to 54 from 52.8 in June. A figure above 50 points to growth in the sector while anything below suggests contraction. But Markit did warn that the crisis in Ukraine was still clouding the outlook.

The dollar fetched 101.77 yen, against 101.81 yen in New York. The greenback had rallied in US trade from 101.47 yen earlier in the day in Tokyo as investors welcomed a China PMI from banking giant HSBC that came in at 52.0 for July from a final reading of 50.7 in June.

The US currency's advance was staunched later, though, when figures pointing to a drop in new home sales offset news that US unemployment insurance benefits had hit an eight-year low last week.

It was "another disappointing housing release that will again highlight housing concerns for the Federal Reserve ahead of next week's...(policy) meeting", said National Australia Bank.

The dollar was mixed against other Asia-Pacific currencies.

It firmed to 11,578 Indonesian rupiah from 11,542 rupiah on Thursday, to 31.87 Thai baht from 31.83 baht, to Sg$1.2414 from Sg$1.2384 and to 60.11 Indian rupees from 60.02 rupees.

The greenback eased to 43.30 Philippine pesos from 43.32 pesos, and to 1,026.15 South Korean won from 1,028.78 won.

The Australian dollar fell to 94.07 US cents from 94.42 cents, while the Chinese yuan was higher at 16.40 yen against 16.39 yen.

Copyright AFP (Agence France-Presse), 2014

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parvezjabri@yahoo.com (Parvez Jabri)AsiaFri, 25 Jul 2014 10:09:13 +0000
Euro stands firm after rebounding from lowshttp://www.brecorder.com/markets/fxmm/asia/185655-euro-stands-firm-after-rebounding-from-lows.htmlhttp://www.brecorder.com/markets/fxmm/asia/185655-euro-stands-firm-after-rebounding-from-lows.htmlimageTOKYO: The euro dug in against the dollar and yen on Friday after bouncing back from multi-month lows in the previous session in response to upbeat manufacturing data.

The news out of Europe added an upbeat outlook fuelled by a surge in an index that gauges the manufacturing sector in China, the world's number two economy.

The single currency bought $1.3465 and 137.06 yen in Tokyo, compared with $1.3464 and 137.07 yen in New York late Thursday.

It had sunk to an eight-month low of $1.3445 and a five-month low of 136.45 yen in Asia earlier Thursday on concerns about the effect of sanctions on Russia -- a key eurozone energy supplier -- over its links to Ukrainian rebels accused of shooting down MH17 last week.

However, it rallied after private research firm Markit said its purchasing managers index (PMI) jumped in July to 54 from 52.8 in June. A figure above 50 points to growth in the sector while anything below suggests contraction. But Markit did warn that the crisis in Ukraine was still clouding the outlook.

The dollar fetched 101.79 yen, against 101.81 yen in New York. The greenback had rallied in US trade from 101.47 yen earlier in the day in Tokyo as investors welcomed a China PMI from banking giant HSBC that came in at 52.0 for July from a final reading of 50.7 in June.

The US currency's advance was staunched later, though, when figures pointing to a drop in new home sales offset news that US unemployment insurance benefits had hit an eight-year low last week.

It was "another disappointing housing release that will again highlight housing concerns for the Federal Reserve ahead of next week's...(policy) meeting", said National Australia Bank.

Copyright AFP (Agence France-Presse), 2014

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parvezjabri@yahoo.com (Parvez Jabri)AsiaFri, 25 Jul 2014 05:17:27 +0000
Sri Lankan rupee steady at 1-week high; stocks edge uphttp://www.brecorder.com/markets/fxmm/asia/185626-sri-lankan-rupee-steady-at-1-week-high;-stocks-edge-up.htmlhttp://www.brecorder.com/markets/fxmm/asia/185626-sri-lankan-rupee-steady-at-1-week-high;-stocks-edge-up.htmlimageCOLOMBO: The Sri Lankan rupee traded flat on Thursday as exporter dollar sales offset importer demand, a day after the treasury secretary said the rupee was maintained steady while the country builds up its foreign exchange reserves.

The rupee was traded at 130.24/26 per dollar at 0723 GMT, the same as its previous close, which was also the highest close since July 18.

"There was not much of pressure on either side," said a currency dealer.

Finance Secretary P.B. Jayasundera said late on Wednesday that Sri Lanka was building up its foreign exchange reserves while keeping its currency stable as the island nation sees more dollar inflows.

Speaking at a Foreign Correspondents' Association forum, Jayasundera said the choice was to let the exchange rate appreciate and enjoy the short-term gain or let the exchange rate remain flexible within a reasonable level.

"Technically speaking you have the luxury to allow the exchange rate to appreciate. We don't want that to happen," said Jayasundera, the top technocrat in President Mahinda Rajapaksa's government.

The central bank has absorbed more than $750 million so far this year, which Jayasundera attributed to a rise in inflows from exports, tourism and remittances.

Dealers had been expecting the rupee to appreciate due to weak growth in imports and private sector credit, despite multi-year low interest rates.

Private sector credit growth hit a more than 4-1/2 year low of 2.2 percent in May on the year, compared with 3.3 percent a month earlier. May imports fell 17.6 percent year on year to $1.28 billion.

Jayasundera said the lack of credit demand was due to many sectors having become "cash rich", with increasing import substitution having curtailed imports.

Sri Lanka's main stock index was up 0.07 percent, or 4.82 points, to 6,788.80 at 0730 GMT, hovering around a 34 month-high. Turnover was 508.8 3 million rupees ($3.9 million)with 22.8 million shares changing hands.

Copyright Reuters, 2014

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imad_kueconomist@yahoo.com (Imaduddin)AsiaThu, 24 Jul 2014 11:20:32 +0000
Asian currencies slip on profit-taking, won dented by weak GDPhttp://www.brecorder.com/markets/fxmm/asia/185613-asian-currencies-slip-on-profit-taking-won-dented-by-weak-gdp.htmlhttp://www.brecorder.com/markets/fxmm/asia/185613-asian-currencies-slip-on-profit-taking-won-dented-by-weak-gdp.htmlimageSINGAPORE: Asian currencies slipped on Thursday as investors booked profits after a recent rally, while the won fell as South Korea's weak second-quarter growth bolstered expectations for an interest rate cut.

The won fell 0.5 percent to 1,028.6 versus the dollar , snapping a three-day winning streak.

South Korea offered billions of dollars in stimulus spending on Thursday to shore up domestic demand after Asia's fourth-largest economy grew at its weakest pace in more than a year in the second quarter.

The Indonesian rupiah slipped 0.6 percent to 11,565 versus the dollar, down from a two-month high of 11,475 set on Wednesday, according to Thomson Reuters data.

The rupiah retreated due to dollar-buying by local players and corporate demand for the greenback, traders said.

The rupiah had rallied on Wednesday, the day after Joko "Jokowi" Widodo was declared the winner of Indonesia's presidential election.

The Malaysian ringgit also faltered on Thursday, slipping 0.2 percent to 3.1735.

The generally weak tone in Asian currencies was probably caused by profit-taking, a trader for a Malaysian bank in Kuala Lumpur said.

The Thai baht retreated 0.1 percent to 31.82 versus the dollar, pulling back from an eight-month high of 31.75 set this week.

"There have been enhanced portfolio inflows into Thailand this week," said Saktiandi Supaat, head of FX research at Maybank. These follow "a relative period of stability under the current junta's control" and reflect expectations there will be a pick-up in infrastructure spending, he said.

Copyright Reuters, 2014

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imad_kueconomist@yahoo.com (Imaduddin)AsiaThu, 24 Jul 2014 10:59:25 +0000
Dollar steady in Asian tradehttp://www.brecorder.com/markets/fxmm/asia/185561-dollar-steady-in-asian-trade.htmlhttp://www.brecorder.com/markets/fxmm/asia/185561-dollar-steady-in-asian-trade.htmlimageTOKYO: The dollar held steady in Asia Thursday with currency markets little moved by weak Japanese trade data and upbeat manufacturing figures out of China.

In late afternoon Tokyo trade, the dollar fetched 101.47 yen, against 101.48 yen in New York late Wednesday.

The euro bought $1.3455 and 136.55 yen, against $1.3462 and 136.62 yen.

Regional stock markets rose as an index of Chinese manufacturing activity hit an 18-month high in July, boosting hopes for the world's number two economy, while concerns over the Ukraine crisis eased.

"It's hard to say that the risk aversion mood is growing," said Mizuho Securities chief FX strategist Kengo Suzuki.

The yen tends to gain ground in times of uncertainty and turmoil, but markets moved little after fresh Japanese data showed the country's trade deficit ballooned to a record in the first half of the year.

The figures were likely to ramp up pressure on the Bank of Japan for fresh easing measures, which tend to weaken the yen.

The British pound dipped to $1.7032 from $1.7040 in New York late Wednesday.

The decline came despite Bank of England governor Mark Carney telling a conference that the central bank needs to start raising interest rates in the coming months, even as he emphasised there is no "preset course" for doing so.

"The UK economy has been growing rapidly," Carney said. "As the economy normalises, (the) bank rate will need to start to rise in order to achieve the inflation target."

But he added that bank policymakers have "no preset course and the timing of any increases in interest rates will be determined by the data".

Carney's remarks came as minutes of a July monetary policy meeting showed that BoE members unanimously agreed to keep the key interest rate at an all-time low of 0.50 percent.

The dollar was mixed against other Asia-Pacific currencies.

It firmed to 11,542 Indonesian rupiah from 11,505 rupiah on Wednesday, to 43.32 Philippine pesos from 43.29 pesos, to 1,028.78 South Korean won from 1,024.20 won, and to 31.83 Thai baht from 31.75 baht.

It weakened to Sg$1.2384 from Sg$1.2392 and to 60.02 Indian rupees from 60.19 rupees.

The Australian dollar edged up to 94.42 US cents from 94.40 cents, while the Chinese yuan was higher at 16.39 yen against 16.34 yen.

Copyright AFP (Agence France-Presse), 2014

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parvezjabri@yahoo.com (Parvez Jabri)AsiaThu, 24 Jul 2014 08:23:18 +0000
Dollar steady in Asian tradehttp://www.brecorder.com/markets/fxmm/asia/185517-dollar-steady-in-asian-trade.htmlhttp://www.brecorder.com/markets/fxmm/asia/185517-dollar-steady-in-asian-trade.htmlimageTOKYO: The dollar held steady in Asia Thursday with currency markets little moved by weak Japanese trade data and upbeat manufacturing figures out of China.

In afternoon Tokyo trade, the dollar fetched 101.45 yen, against 101.48 yen in New York late Wednesday.

The euro bought $1.3459 and 136.55 yen, against $1.3462 and 136.62 yen.

Regional stock markets rose as an index of Chinese manufacturing activity hit an 18-month high in July, boosting hopes for the world's number two economy, while concerns over the Ukraine crisis eased.

"It's hard to say the risk aversion mood is growing," said Mizuho Securities chief FX strategist Kengo Suzuki.

The yen tends to gain ground during times of uncertainty and turmoil, but markets moved little after fresh Japanese data showed the country's trade deficit ballooned to a record in the first half of the year.

The figures were likely to ramp up pressure on the Bank of Japan for fresh easing measures, which would tend to weaken the yen.

The British pound dipped to $1.7032 from $1.7040 in New York late Wednesday.

The decline came despite Bank of England governor Mark Carney telling a conference that the central bank needs to start raising interest rates in the coming months, even as he emphasised there is no "preset course" for doing so.

"The UK economy has been growing rapidly," Carney said. "As the economy normalises, (the) bank rate will need to start to rise in order to achieve the inflation target."

But he added that bank policymakers have "no preset course and the timing of any increases in interest rates will be determined by the data".

Carney's remarks came as minutes of a July monetary policy meeting showed that BoE members unanimously agreed to keep the key interest rate at an all-time low of 0.50 percent.

Copyright AFP (Agence France-Presse), 2014

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parvezjabri@yahoo.com (Parvez Jabri)AsiaThu, 24 Jul 2014 06:28:02 +0000