Asian currencies: Thai baht falls against dollar
Overall, Asian currencies gained on a weak dollar while equities fell.
Thailand's currency fell 0.3% to 32.825 per US dollar after rising 0.5% earlier in the day. Equities in Bangkok traded 0.3% lower.
Pichai Naripthaphan, the country's commerce minister, said he wanted a weaker baht to support exports and that a level of 36-37 per US dollar was more suitable.
The minister said that Thailand's exchange rate policy was not part of ongoing trade negotiations with the United States.
'The intraday reversal likely reflects how sensitive FX markets are to verbal intervention. When a senior policymaker explicitly says the currency needs to weaken, markets take that as a green light,' said Mohit Mirpuri, equity fund manager at SGMC Capital.
'While fundamentals like tourism recovery and current account surplus support the baht medium term, these types of comments can dampen momentum short term.'
The Philippine peso was only marginally higher as mounting political uncertainty in the country capped gains, while stocks fell as much as 1.7% to hit their lowest level since April-end.
Political instability has deepened in the Philippines after President Ferdinand Marcos Jr. asked for the resignation of his entire cabinet, following a lackluster performance by his allies in last week's Senate elections.
Maybank analysts see support for the peso, including rising inflows, as the country's economy remains relatively sheltered.
Meanwhile, the central bank of Sri Lanka surprised markets with a 25-basis-point rate cut in a bid to support growth in a country facing lingering economic issues.
The Sri Lankan rupee inched higher while equities in Colombo jumped as much as 0.9% to hit their highest since March 3.
Among other currencies, the Indonesian rupiah, Taiwan dollar and its Singaporean counterpart gained up to 0.4%, 0.3% and 0.1%, respectively.
'Asia EM FX has mainly been lifted by market perception that the US is looking for a weaker dollar versus Asian currencies, as part of its efforts to address its deep trade imbalances with several Asian economies,' said Lloyd Chan, FX strategist at MUFG.
Stocks in Taiwan, Singapore and South Korea slipped 0.6%, 0.1% and 1.2%, respectively.
Investor focus remained on US President Donald Trump's tax bill, set for a congressional vote this week.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
5 minutes ago
- Business Recorder
Pakistan remains among worst passports in Henley's latest ranking
Pakistan's passport continues to languish near the bottom of the Henley Passport Index 2025 – fourth-worst – ahead of Iraq, Syria, and Afghanistan, according to the latest global rankings released on Tuesday. Singapore retained the title of the world's most powerful passport, with visa-free access to 193 destinations out of 227 globally, according to the index. The index includes data from the International Air Transport Association (IATA) and ranks all the world's passports based on the number of destinations their holders can enter without a prior visa. Asian nations continue to lead the global mobility race, with Japan and South Korea sharing 2nd place, each granting their citizens access to 190 destinations visa-free. A contingent of European countries occupied the rest of the Top 5. Seven EU passports share 3rd place – Denmark, Finland, France, Germany, Ireland, Italy, and Spain, all with access to 189 destinations. UAE was ranked 8th with a mobility score of 184, and the only country in the Middle East in the top 10. The UAE continues to be a standout among the top risers, shooting up 34 places over the last 10 years from 42nd to 8th place. Last month, Pakistan and the UAE signed a visa exemption agreement for diplomatic and official passports. Pakistani passport fourth-worst in the world: Henley Passport Index Dr Christian H. Kaelin, the inventor of the passport index concept, said the latest Henley Passport Index had revealed an increasingly competitive landscape in global mobility. 'The consolidation we're seeing at the top underscores that access is earned – and must be maintained– through active and strategic diplomacy,' she was quoted as saying in the press release issued by Henley on Tuesday. 'Nations that proactively negotiate visa waivers and nurture reciprocal agreements continue to rise, while the opposite applies to those that are less engaged in such efforts.' Biggest movers and shakers The UK and US have each dropped a place in the global passport rankings since January, continuing a long-term downward trend. Once the most powerful passports in the world – the UK in 2015 and the US in 2014 – they now rank 6th and 10th, respectively. The UK currently has visa-free access to 186 destinations, while the US trails with 182. Notably, the US is now on the brink of exiting the Top 10 altogether for the first time in the index's 20-year history. India has recorded the largest jump in ranking over the past six months, climbing eight places from 85th to 77th, while Saudi Arabia has made the biggest gain in visa-free access, adding four destinations since January. Its total now stands at 91, lifting the kingdom four places to 54th. Pakistan, UAE sign visa exemption agreement for select passport holders
Business Recorder
an hour ago
- Business Recorder
Palm ends higher despite uncertainty over US trade deals that kept market volatile
KUALA LUMPUR: Malaysian palm oil futures ended higher on Tuesday, although uncertainty over potential trade deals between major Asian countries and the United States kept the market volatile. The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange gained 38 ringgit, or 0.9%, to 4,263 ringgit ($1,008.04) a metric ton at the close. The contract lost about 2.1% on Monday. Crude palm oil futures were higher following overnight strength in Chicago and South American soyoil futures, said Anilkumar Bagani, research head of Mumbai-based vegetable oil broker Sunvin Group. However, Bagani said the lack of confirmation regarding any trade deals between the U.S. and major Asian countries, apart from Indonesia, continues to fuel market volatility. 'The weakness seen in Chicago soyoil and rapeseed oil, combined with a stronger Malaysian ringgit, capped the gains,' he said. Dalian's most-active soyoil contract fell 0.59%, while its palm oil contract shed 0.36%. Soyoil prices on the Chicago Board of Trade were down 0.66%. Palm oil makes more than 3% weekly gain for highest close in 14 weeks Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market. Oil prices declined for a third consecutive session on concerns that the brewing trade war between major crude consumers, the United States and the European Union, will curb fuel demand growth by reducing economic activity. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock. The ringgit, palm's currency of trade, strengthened 0.09% against the dollar, making the commodity slightly more expensive for buyers holding foreign currencies.
Business Recorder
an hour ago
- Business Recorder
Bulls return to bourse, KSE-100 gains over 1,200 points
After declining in the previous session, positive sentiments returned to the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index settling with a gain of over 1,200 points on Tuesday. Buying momentum persisted throughout the trading session, pushing the index to an intraday high of 139,901.77 At close, the benchmark index settled at 139,419.61, an increase of 1,202.03 points or 0.87%. On Monday, PSX opened the new week on a volatile note. The downturn was largely attributed to investor profit-taking ahead of July's end and cautious sentiment following a record-breaking run. The benchmark KSE-100 Index declined by 379.78 points, or 0.27%, to close at 138,217.58 points. Internationally, Asian share markets held their ground near a four-year peak on Tuesday, buoyed by Wall Street's closing record high ahead of a slate of corporate earnings. At the same time, investors took stock of tariff negotiations between the US and its trading partners. Japanese shares briefly jumped at the open before trading modestly higher, while bonds had a muted reaction as the election results were largely priced in and were not as bad as investors had feared. The yen rallied 1% on Monday, recouping some of the losses from past weeks and was last little changed at 147.46 per dollar on Tuesday. MSCI's broadest index of Asia-Pacific shares outside Japan hit its highest level since October 2021 in early Asian hours but was last little changed. The index is up nearly 16% this year. Overnight, the S&P 500 and the Nasdaq notched record-high closes on Monday, lifted by Alphabet and other megacaps ahead of a burst of earnings reports this week. Investor focus has been on tariff negotiations ahead of the August 1 deadline, with the European Union exploring a broader set of possible countermeasures against the United States.
