Halister News

(Bloomberg) -- Singapore dollar drops after the central bank unexpectedly shifts to a neutral policy stance, spurring declines in rest of Asian regional currencies. Korean won is also among the leading losers after President Park suffers blow in parliamentary elections.

• Singapore sets rate of appreciation of S$NEER policy band to zero percent, beginning April 14, MAS says in a statement; adds that this isn’t a policy to depreciate the currency and only removes modest and gradual appreciation path of S$NEER policy band that was in place
• SGD fell as much as 0.96%; now down 0.83% to 1.3617
  • Singapore’s decision to adopt zero-percent appreciation policy could indicate regional central banks aren’t willing to maintain currency strength after recent gains, says Commerzbank
  • MAS unlikely to move SGD policy again in Oct., SMBC says
  • Singapore GDP grew 1.8% y/y in 1Q, vs est. 1.7% expansion
• KRW drops after ruling Saenuri Party loses majority in nation’s general election
  • President Park suffers blow in parliament election; ruling party leader Kim resigns over election result
  • South Korea election result reduces chances of QE: Goldman Sachs
• Yuan drops after PBOC weakens reference rate by most since Jan. 7
  • Premier Li said yday foundations for China’s economic improvement aren’t solid as global economic recovery is weak: CCTV
  • March new loans, money supply data may be due from today
  • Gains in USD/CNY and USD/CNH to be gradual, tempered to ensure spread doesn’t widen too fast: Maybank
• Australia’s focus on spending cuts makes balancing budget difficult, Moody’s says in e-mailed report
  • AUD falls 0.19% to 0.7638 after sold earlier by leveraged funds from 0.7650 in reaction to Moody’s comments, according to an FX trader
  • March jobless rate unexpectedly fell to 5.7%, lowest in two- and-a-half years
  • Employment rose 26,100 from Feb.; est. 17,000 gain
• MYR falls, set to snap six-day gain as oil extends losses and other Asian currencies decline
• Dollar Index up 0.22% to 94.95; U.S. Treasuries gains, with yield on 10-year bonds little changed at 1.7534%