Halister News

(Bloomberg) -- Asian currencies extend declines following U.K. vote to leave EU; safe-haven yen and Indian rupee the only gainers; yuan falls as China weakens yuan reference rate most since Aug. 13.

• Dollar Index continues to rise, adding 0.8% to Friday’s 2.1% advance
• Trading in EM markets appears extremely thin, exacerbating price moves, says Tsutomu Soma, Tokyo-based general manager of fixed-income at SBI Securities; Brexit concerns continue to stoke risk-off sentiment
• Deteriorating risk sentiment likely to dominate mkt in coming sessions, Scotiabank says in note today; watching for continued portfolio outflows that could further weaken regional currencies
• Onshore yuan extends decline to third day; at lowest since Dec. 2010; PBOC weakens CNY reference rate 0.91%; offshore yuan also down for third day, at weakest since Jan. 11
  • In speech at World Economic Forum in Tianjin, Premier Li says China can keep yuan exchange rate stable
  • China has tools to cope with post-Brexit turbulence and should limit intervention, Asian Infrastructure Investment Bank head Jin Liqun said in interview Sunday
  • PBOC said Friday it has plans to cope with Brexit, without elaborating
  • PBOC likely to ease policy via more RRR cuts, Macquiarie says
  • Brexit poses considerable uncertainty for offshore RMB business in Europe, CICC says
  • May industrial co. profits +3.7% y/y vs +4.2% in April
• Aussie falls 0.7% to 0.7414; could trade below 0.74 today on Brexit-inspired risk aversion, Wetspac said in note earlier; targets below 0.72 over 1-3 mos. as further RBA easing will be negative for currency
• Kiwi down 0.8% following 1.7% drop Friday; New Zealand trade surplus unexpectedly widens to NZD$358m in May vs est. NZ$182m
• Korean won at weakest since June 3; govt ready to take “bold measures” to stabilize mkts, Finance Minister Yoo says; BOK Governor Lee will hold high-level meeting to consider post-Brexit measures, according to statement
• Malaysian ringgit slides as much as 1.9% as oil weakens; ringgit and won most heavily impacted of EM Asia currencies by Brexit: Macquarie; highly liquid Singapore dollar also impacted
• Singapore dollar down 0.4% following 1.2% drop Friday
• Taiwan dollar extends declines; Goldman Sachs now expects central bank to cut rate by 12.5b bps from 1.5% on June 30
• Yen extends gains for second day following 3.9% rally Friday; fell vs dollar from 8-9am, but then strengthened again
  • Asia-based FX trader says leveraged funds selling dollar as weakening in yuan spurs risk-off in mkt
  • Finance Minister Aso says PM Abe asked for various measures to stabilize markets, issued instructions to ensure liquidity
  • Key USD/JPY support at 100 has already breifly given way, and more downside is in store, Macquarie says in note; wouldn’t chase bellow 100 though given risk of BOJ intervention and strong possibility of further easing on July 29; look for FX pair to settle at 100 for coming weeks
• Rupee rises 0.2% after 1.1% drop on Friday; rebounds from early losses as state-run banks seen selling dollars, according to three Mumbai-based traders
  • “The early dollar selling by state-run banks on the central bank’s behalf is likely to prevent the rupee from falling sharply,” RBL Bank’s head of FX trading Rohan Lasrado says