Asian Currency Outlook Kyat, RMB, Ringgit, Baht, Peso, Singapore Dollar

Currencies in Asia fell last week but should regain ground this week and will see a strong rally should the USA undermine the USD with a QE3 announcement.

The rupiah, which has traded in the area of 9,100 against the dollar in recent weeks, is expected to strengthen to the 9,000 level in the coming weeks. That is the trading level assumed by the government in the revised budget submitted to the House of Representatives last month.

Myanmar began a managed flotation of its currency, the kyat, on April 2.

The central bank set a reference rate of 818 kyat to the dollar, bringing the official currency rate in line with its value on the black market.

The central bank said the float would allow market forces to determine the value of the kyat while leaving room for it to influence the unit’s value.

Thailand’s baht weakened 0.6 percent from April 12 to 30.90. Thailand’s onshore financial markets were closed on April 13 and April 16 for public holidays. The Philippine peso climbed 0.1 percent to 42.607, while Taiwan’s dollar was little changed at NT$29.521. Vietnam’s dong gained 0.4 percent to 20,838.

The ringgit is likely to be traded in a tight range next week, between 3.06 and 3.07 on uncertain market conditions.

Live Asia Markets

Live Europe Markets

Live USA Markets

Live Agricultural Markets

Live Commodities Market

Download the ASEAN +3 Investment Outline

Linda Johnson,
Business Development Director – Private Client Group,
Heffernan Capital Management
Sales@Heffcap.com

Singapore

3 Raffles Place #07-01
Bharat Building Singapore 048617
Tel: +65 6329 6408
Fax: +65 6329 9699

China’s RMB declined 0.09 percent this week to 6.3085 per dollar after the nation widened the currency’s trading band to 1 percent from 0.5 percent from April 16. The band, which is centered on a rate set daily by the central bank, was last broadened in May 2007 from 0.3 percent. The central bank weakened the RMB’s daily reference rate against the dollar on four out of five days this week.

The won posted a second weekly loss, falling 0.4 percent to 1,139.55. North Korea said it will continue its space program following the failure of a rocket launch on April 13, according to a statement April 19 that the North’s official Korean Central News Agency attributed to a spokesman for the Korean Committee for Space Technology.

South Korea unveiled new cruise missiles yesterday that it said could hit anywhere in North Korea. The military has deployed the missiles and is making preparations to ensure it can respond firmly to North Korean provocations, Defense Ministry spokesman Kim Min Seok said