The rupee, South Korea’s victory has weakened as a view of the Fed’s rate supports the dollar

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The Indonesian rupiah and the South Korean won led the losses

among Asian currencies on Wednesday as prospects for tightening U.S. policy

supported the dollar, while losses in technology companies withdrew South Korea

reference index by more than 1%.

South Korea’s COSPI reached its lowest level in more than four weeks

as technology heavyweights tracked overnight losses on the Nasdaq, caused

increased U.S. yields and poor performance of technology stocks. Elsewhere, Indonesia

and Singapore shares fell more than 0.5% each.


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Regional currencies were under pressure from the stronger dollar, which they were

hovering near a one-week high, ahead of the release of the US Federal Reserve

Minutes from the December meeting, which could give more clues as to the timing of either

rate increases.

The dollar was also supported by an increase in US Treasury yields as bonds

investors have been preparing to raise interest rates by the Federal Reserve by mid-year

to curb stubbornly high inflation.

“The focus of the market is generally on stricter political prospects,”

with resilient economic conditions that so far support expectations that will

the path to policy normalization will remain unfettered, ”said Yeap Jun Rong,

market strategist in the retail trading platform IG.

Investors will also focus on data on the U.S. workforce, which should come on Wednesday and is not engaged in agriculture


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payrolls are expected later this week as a guide to normalization

timeline. Strong data footprints could reinforce the Fed’s hawk bias even further

support the dollar, Maybank analysts say.

Among the Asian units, the Indonesian rupiah and the South Korean won

each fell by about 0.5%, with the rupee touching the lowest in the higher

more than two weeks and the victory weakened to its lowest level in almost three months.

The Malaysian ringit and the Philippine peso weakened

about 0.2%, but the Thai baht extended growth to the second session,

adding 0.3% to reach a six-week high of $ 33.14 against some

portfolio inflows.

Profits came even when the Bank of Thailand (BoT) sounded worse

minutes from his last policy meeting, in which he warned of the larger and more


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prolonged impact than expected from the outbreak of Omicron on economic recovery.

Meanwhile, data showed that inflation in Thailand rose by less than expected

December compared to a year earlier, and remained in the top half of BoT’s 1-3%

target range.

Analysts from the banking group of Australia and New Zealand expect a price on the supply side

pressures to keep inflation likely to rise in the near future, and see the average

inflation in the range of BoT in 2022 with an increase in the rate that will not materialize until


Among stocks, Malaysian stocks rose up 0.5% after two days

losing the string, the Thai standard won for the fifth day in a row,

jumping 0.3% to its highest level since September 2019, and the Indian Nifty 50

got the fourth day in a row.


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Philippine Stock Exchange, which suspended

trading on Tuesday due to a technical malfunction, fell 0.5% on a small scale

sessions, after rising to 1.3% earlier in the day.


** Indonesia’s 10-year reference yields fell 10.8 basis points to 6.301%,

as of December 1

** China’s market regulator fines Alibaba and Tencent for failure to report


** New COVID-19 cases in India doubled in four days to 58,097

Asian stock indices and

currency at 06:25 GMT


DAILY from the beginning of the year%


Japan +0.13 -0.78 0.10 1.88



Indonesia -0.40 -0.75 -0.50 1.22

Malaysia -0.13 -0.61 0.25 0.53

Philippines +0.18 +0.06 -0.30 -1.43



Singapore -0.01 -0.50 -0.54 1.29



(Reporting by Sameer Manekar of Bengaluru; Editing by Sherry Jacob-Phillips)



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