October 11, 2024 04:42 GMT
ASIA FX: Won Aided By Hawkish BoK Cut, CNH Steady
ASIA FX
North East Asia currencies are firmer against the USD, although the standout is the KRW. This followed a hawkish start to the BoK easing cycle.
- USD/CNH is down a touch, last near 7.0800. This leaves the pair comfortably within recent ranges. Onshore equities struggled in the first part of trade, with the CSI 300 down nearly 1.9%, as stimulus uncertainty continues. All eyes are on tomorrow's MOF fiscal briefing. Some sell-side analysts expect more meaningful measures to be introduced later this month when the NPC meets. Also note we get Sep inflation data on Sunday, while more China authorities meet on Monday to help the firm outlook.
- Spot USD/KRW sits back under 1347 in latest dealings, after closing Thursday trade at 1354. This closing level was fresh highs back to mid August for the pair. The BoK cut rates by 25bps as widely expected, although only one board member sees rates lower in the next 3 months. Governor Rhee noted that financial stability in terms of household borrowing trends and property prices will be watch points for the central bank in terms of reaction to this cut. Local equities are higher, but the Kospi index remains close to the 2600 level.
- Spot USD/TWD has remained relatively steady, the pair last at 32.17, so still within striking distance of recent highs. Local equities are up around 1% so far today.
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