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ASIA FX: Asian Currencies Rally on Further China Stimulus.

ASIA FX
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  • Following on from yesterday’s RRR cuts and various policy measures, China cut their Medium Term Lending Rate 30bp today, providing further support to already strong markets.
  • All major currencies performed well with the outperformers on the day being the Malaysian Ringgit and Indonesia Rupiah.  
  • MYR is up +0.82% intra day and IDR +0.72% with KRW, TWD and THB all up over 0.50% today.
  • MYR has strengthened to levels not seen since 2021 as the economic outlook remains strong, providing the Central Bank with ample ability to not be rushing to cut rates.
  • IDR too has continued to strengthen and has hit new highs for the year at 15,088.
  • The Chinese Yuan tested USDCNY7.00 today and the currency’s strength, and how the PBOC reacts, will be the next phase for market observers as Chinese authorities seek to stimulate their economy.
  • With much of Asia correlated to firstly the US and now China’s easing, it is likely that in the near term the ongoing strength in Asian currencies will continue. 
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  • Following on from yesterday’s RRR cuts and various policy measures, China cut their Medium Term Lending Rate 30bp today, providing further support to already strong markets.
  • All major currencies performed well with the outperformers on the day being the Malaysian Ringgit and Indonesia Rupiah.  
  • MYR is up +0.82% intra day and IDR +0.72% with KRW, TWD and THB all up over 0.50% today.
  • MYR has strengthened to levels not seen since 2021 as the economic outlook remains strong, providing the Central Bank with ample ability to not be rushing to cut rates.
  • IDR too has continued to strengthen and has hit new highs for the year at 15,088.
  • The Chinese Yuan tested USDCNY7.00 today and the currency’s strength, and how the PBOC reacts, will be the next phase for market observers as Chinese authorities seek to stimulate their economy.
  • With much of Asia correlated to firstly the US and now China’s easing, it is likely that in the near term the ongoing strength in Asian currencies will continue.