HALISTER1: INSIDE ASIA: Currencies Rise on Oil, Led by MYR; Yen Pares Gains

INSIDE ASIA: Currencies Rise on Oil, Led by MYR; Yen Pares Gains

(Bloomberg) -- Majority of Asian currencies advance as oil prices rebound; Malaysian ringgit is sensitive to oil and leads the gainers after 2-day decline; South Korea’s won also heads for first daily gain since Monday.
  • Oil price jump supportive of risk and EM markets, Oanda senior Asia Pacific FX trader Stephen Innes says
    • Cautious atmosphere; nobody too eager to take mkts one way or the other
    • Lack of speculative flows in Aug. as traders tend to pare positions during holiday season, with liquidity only from corporates, real & cash investors
  • India passes goods & services tax bill; click here for roundup
    • Mirae Asset Global adds India govt bonds as reforms continue: interview
    • Rupee steady at 66.99 per dollar after falling yesterday for first time in 7 days; 10-yr govt bond yield down 2 bps at 7.17%
  • Yen rises as much as 0.4% to 100.86 vs USD; pares back to 101.23
    • Iwata spurs uncertainty on BOJ stance, NBC Financial Markets Asia says
    • BOJ to buy more often to reach $59b ETF target, Tokai Tokyo Research says
    • Nikkei 225 up 0.3% after falling in morning
    • Yield on 10-yr govt bond rises 1 bp to -0.85%
    • Regional Minister Yamamoto says poor wage gains slow deflation escape
    • Overseas investors bought JGBs last week on BOJ rate-cut bets, BofAML says
    • Sale of 10-yr inflation-linked bond sale gets higher cut-off price than est.
  • Aussie and Kiwi gain as energy price rises
    • Australia June retail sales rose 0.1% vs +0.3% est.
    • CBA says NZD/USD unlikely to drop much on RBNZ rate-cut next week as already largely priced in
  • Yuan steady after PBOC weakens yuan fixing by 0.38%, most since July 6, to 6.6444 vs USD; strengthened it 0.39% yesterday
    • PBOC reiterates it will keep prudent monetary policy in 2H and liquidity ample; comment comes after NDRC researchers withdrew earlier calls for interest-rate and RRR cuts
  • Indonesia rupiah one of few decliners, heading for third daily loss
    • Planned 2016 budget deficit widened to 2.5% of GDP from 2.35%, Finance Minister Indrawati said late yesterday
  • Thailand baht steady after earlier fall
    • Bank of Thailand left rates unchanged yesterday; assistant governor Jantarangs said BOT won’t be limited to using only interest rates to manage currency volatility
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Stephen Innes (OANDA Corp)

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