Asean Business

Bullish bets on Asian currencies agency, Thai baht leads pack

[BANGKOK] Buyers firmed their bullish stance on most Asian currencies over the previous two weeks, a Reuters ballot confirmed on Thursday (Feb 24), with lengthy bets on the Thai baht greater than tripling on hopes of an financial restoration amid dangers from geopolitics and the pandemic.

The ballot of 12 market contributors confirmed lengthy positions within the Thai baht have been at their highest because the finish of 2019, whereas bear positions within the Indonesian rupiah reversed and related positions within the Korean gained, Philippine peso, and the Indian rupee unwound considerably.

Thailand’s finance minister stated all insurance policies have been directed in the direction of reaching a 4 per cent financial development this 12 months and making certain full restoration in 2024. Earlier this month, its central financial institution additionally left the benchmark rate of interest at a report low for a 14th straight assembly.

“Thailand’s financial restoration stays uneven however will proceed regardless of pandemic volatility,” stated Chua Han Teng, economist at DBS Group.

Most regional models, nevertheless, confronted headwinds this week from rising tensions between Russia and Ukraine. They took a beating additional on Thursday after Russian forces launched a full-scale assault, firing missiles at a number of Ukrainian cities and touchdown troops in its south coast.

This ballot was concluded earlier than the assault.

Bullish bets on the Chinese language yuan have been maintained, with the foreign money hovering at a close to 4-year excessive on Thursday as demand rose for much less dangerous belongings.

The yuan additionally appeared extra resilient, in contrast with rising market friends, on rising international capital inflows into Chinese language belongings and heavier company conversion of their export receipts into the yuan.

Analysts reversed their brief positions on the Indonesian rupiah as South-east Asia’s largest financial system booked a US$2 billion finances surplus in January, with tax revenues hovering by stronger financial restoration and excessive commodity costs.

The Asian foreign money positioning ballot is concentrated on what analysts and fund managers consider are the present market positions in 9 Asian rising market currencies: the Chinese language yuan, South Korean gained, Singapore greenback, Indonesian rupiah, Taiwan greenback, Indian rupee, Philippine peso, Malaysian ringgit and the Thai baht.

The ballot makes use of estimates of web lengthy or brief positions on a scale of minus 3 to plus 3. A rating of plus 3 signifies the market is considerably lengthy US {dollars}.

The figures embody positions held by non-deliverable forwards (NDFs). REUTERS

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