SINGAPORE: The South Korean won and Malaysian ringgit rose on Monday, June 28 as investors bought Asian stocks as risk appetite improved, while the Chinese yuan eased on caution after the G20 summit.
Most Asian stock markets rose, with Europe set to follow, as fears eased that Washington would draft a harsh bill for regulating the banking sector and after an unremarkable conclusion to a Group of 20 leaders' summit.
WON
Dollar/won NDFs fell across maturities as investors took the view that the dollar's recent jump was excessive.
"After a massive move on Friday the market is reversing the craziness," said a NDF trader in Singapore.
One-year NDFs fell to 1,198.9 from a one-week high of 1,221.2 hit on Friday.
"I'd like to sell dollar/won as concerns about financial reforms in the United States are gone now. The only uncertainty is European sovereign debts which remain to be watched," said a second trader.
Spot won jumped as much as 1.7 percent to 1,194.8 to the dollar.
RINGGIT, YUAN
The ringgit gained as much as 1 percnt to 3.2175 per dollar, riding on broad dollar weakness.
"Dollar/ringgit sellers push it lower to response on overnight move in euro. Bids started at 3.2200 on importers' requirement plus early profit taking before NDF fixing," said a trader in Kuala Lumpur.
The People's Bank of China set yuan daily mid-point at 6.7890 per dollar, a new post-revaluation high, signalling its bias to guide the yuan steadily higher.
World leaders ditched plans to welcome Beijing's shift towards greater currency flexibility at a G20 summit, highlighting China's sensitivity over the issue.
"A weaker dollar thus has helped PBOC to stay on the gradual appreciation path and stay out of the spot light of the G20 meeting. If we expect the dollar fatigue to stay in the coming days which helps PBOC to guide dollar/yuan down, Asian currencies will benefit," said Andy Ji, strategist Royal Bank of Scotland.
The spot yuan failed to keep up its firm tone as local investors turned cautious on the currency's near-term outlook after the G20 summit, but most analysts expect the yuan to strengthen over time.
RUPEE
The India onshore dollar/rupee premiums continued to edge higher as cash remained tight following outflows of over $29.5 billion seen in late May and June towards 3G auctions, wireless broadband and advance tax payments.
A stronger spot rupee also exerted upward pressure on premiums as importers pay to advantage the unit's rally to a near one-week high.
At 0530 GMT, the one-year dlr premium trades at 148 points, after hitting 149.5 points, its highest since April 20 and above its previous close of 142.75 points.
"The dollar-rupee is getting sold on rallies, premiums are also up. Looks like liquidity will be tight at least till the second week of July," said Nitesh Kumar, an interbank dealer with Development Credit Bank.
The spot rupee rose 0.3 percent to 46.14 per dollar.
BAHT
The Thai baht gained a shade to around 32.34 per dollar in sluggish trade on improving risk appetite.
"Looking ahead, investors are waiting for the U.S. non-farm job data on Friday. The baht's range should be confined to a narrow 32.32-41 today," a Bangkok-based trader said.
The baht has gained about 3 percent against the dollar so far this year, trailing the ringgit and Indonesian rupiah. - Reuters
Most Asian stock markets rose, with Europe set to follow, as fears eased that Washington would draft a harsh bill for regulating the banking sector and after an unremarkable conclusion to a Group of 20 leaders' summit.
WON
Dollar/won NDFs fell across maturities as investors took the view that the dollar's recent jump was excessive.
"After a massive move on Friday the market is reversing the craziness," said a NDF trader in Singapore.
One-year NDFs fell to 1,198.9 from a one-week high of 1,221.2 hit on Friday.
"I'd like to sell dollar/won as concerns about financial reforms in the United States are gone now. The only uncertainty is European sovereign debts which remain to be watched," said a second trader.
Spot won jumped as much as 1.7 percent to 1,194.8 to the dollar.
RINGGIT, YUAN
The ringgit gained as much as 1 percnt to 3.2175 per dollar, riding on broad dollar weakness.
"Dollar/ringgit sellers push it lower to response on overnight move in euro. Bids started at 3.2200 on importers' requirement plus early profit taking before NDF fixing," said a trader in Kuala Lumpur.
The People's Bank of China set yuan daily mid-point at 6.7890 per dollar, a new post-revaluation high, signalling its bias to guide the yuan steadily higher.
World leaders ditched plans to welcome Beijing's shift towards greater currency flexibility at a G20 summit, highlighting China's sensitivity over the issue.
"A weaker dollar thus has helped PBOC to stay on the gradual appreciation path and stay out of the spot light of the G20 meeting. If we expect the dollar fatigue to stay in the coming days which helps PBOC to guide dollar/yuan down, Asian currencies will benefit," said Andy Ji, strategist Royal Bank of Scotland.
The spot yuan failed to keep up its firm tone as local investors turned cautious on the currency's near-term outlook after the G20 summit, but most analysts expect the yuan to strengthen over time.
RUPEE
The India onshore dollar/rupee premiums continued to edge higher as cash remained tight following outflows of over $29.5 billion seen in late May and June towards 3G auctions, wireless broadband and advance tax payments.
A stronger spot rupee also exerted upward pressure on premiums as importers pay to advantage the unit's rally to a near one-week high.
At 0530 GMT, the one-year dlr premium trades at 148 points, after hitting 149.5 points, its highest since April 20 and above its previous close of 142.75 points.
"The dollar-rupee is getting sold on rallies, premiums are also up. Looks like liquidity will be tight at least till the second week of July," said Nitesh Kumar, an interbank dealer with Development Credit Bank.
The spot rupee rose 0.3 percent to 46.14 per dollar.
BAHT
The Thai baht gained a shade to around 32.34 per dollar in sluggish trade on improving risk appetite.
"Looking ahead, investors are waiting for the U.S. non-farm job data on Friday. The baht's range should be confined to a narrow 32.32-41 today," a Bangkok-based trader said.
The baht has gained about 3 percent against the dollar so far this year, trailing the ringgit and Indonesian rupiah. - Reuters
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