* Regional FX, stocks edge lower * Thai baht set for first weekly gain in four * Fed Chair Powell's speech due later today By Himanshi Akhand Aug 25 (Reuters) - Emerging Asian currencies declined on Friday, with the Thai baht and the Indonesian rupiah weakening the most, as the greenback strengthened ahead of a widely-awaited speech by Federal Reserve Chair Jerome Powell on the path of U.S. monetary policy. The rupiah eased 0.4%, a day after the country's central bank left interest rates unchanged, as expected, while drawing up plans to attract foreign portfolio investment inflows that would help stabilise the currency. Bank Indonesia (BI) plans to issue new rupiah-denominated securities, using its holdings of government bonds as the underlying asset, Governor Perry Warjiyo said. The rupiah is the best performing currency in the region, but it has come under pressure along with Indonesian bonds due to economic weakness in China and a widening yield gap with U.S. Treasuries, which have resulted in Indonesia's external balances deteriorating. Indonesia's current account swung into deficit for the first time in two years in the second quarter due to falling commodity prices and weak global growth, and the central bank expects the deficit will be higher next year. And having posted a $6.5 billion balance of payments surplus in the first quarter, Indonesia showed a $7.4 billion deficit in the April-June quarter. "The new instrument is good to sustain short-term volatility to contain potential external balance change for Indonesia. But for the medium term, it will not solve the problem if the balance of payment pressures escalate," said Fakhrul Fulvian, an economist at Trimegah Securities. "What market really need most now is a steepening yield curve," he said, adding that he sees volatility in rupiah for the next two to three months. Indonesian 10-year benchmark yields were last down 1.5 basis points at 6.558%. The baht weakened 0.5%, but was still set for its first weekly gain in four weeks. After months of political uncertainty following a May general election, the baht has drawn some support from the formation of a new government by the Pheu Thai-led coalition, and appointment of Srettha Thaivisin as prime minister. The baht's weakness on Friday was partly due to data showing Thai exports shrank for a 10th consecutive month in July, and at a far bigger rate than expected. Meanwhile, the U.S. dollar sat at an over two-month peak and was on course for its sixth straight week of gains. Investors are closely waiting for Powell's address on monetary policy at the Jackson Hole Economic Policy Symposium at 1405 GMT to better understand whether the Fed is done with rate hikes and for how long it plans to keep rates elevated. A recent run of strong economic data has helped ease worries of an impending recession in the U.S. but with inflation still above the Fed's target, investors are wary that the U.S. central bank is likely to keep interest rates higher for longer. The South Korean won declined 0.4%, a day after the country's central bank held rates steady for a fifth straight meeting. Malaysia's ringgit weakened 0.2% and was set for its third consecutive weekly loss. Data showed that Malaysia's consumer price index rose 2% from a year earlier in July, the lowest inflation print in two years. Equities in the region were also lower, with those in Jakarta, Manila and Seoul falling between 0.4% and 0.8%. HIGHLIGHTS ** Indonesia may reduce next year's bond sale target with cash from 2023 ** Singapore July manufacturing output down 0.9% y/y, less than expected ** Inflation in Japan's capital slows in August, stays above BOJ target Asia stock indexes and currencies at 0513 GMT COUNTRY FX RIC FX FX INDE STOCKS STOCKS DAILY % YTD % X DAILY YTD % % Japan -0.12 -10.2 <.N2 -2.00 21.25 2 25> ChinaEC> India -0.14 +0.04 <.NS -0.64 6.40 EI> Indonesi -0.37 +1.75 <.JK -0.35 0.36 a SE> Malaysia -0.15 -5.38 <.KL -0.01 -3.41 SE> Philippi +0.00 -1.80 <.PS -0.68 -5.83 nes I> S.Korea 11> Singapor -0.01 -1.23 <.ST 0.03 -2.14 e I> Taiwan -0.11 -3.52 <.TW -1.39 16.98 II> Thailand -0.47 -1.52 <.SE -0.14 -6.80 TI> (Reporting by Himanshi Akhand in Bengaluru; Editing by Simon Cameron-Moore)
Delayed 12:35:03 2024-04-28 pm EDT | 5-day change | 1st Jan Change | ||
0.6533 USD | +0.02% | +1.82% | -4.07% |
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Stocks mentioned in the article
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5d. change
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Capi.
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2,686 PTS | +0.86% | +2.29% | - | ||
1,376 KRW | +0.41% | +0.15% | - | ||
1,007 KRW | 0.00% | +0.71% | - | ||
899.3 KRW | +0.57% | +1.92% | - | ||
690.6 USD | +1.81% | +3.39% | - | ||
197.8 JPY | +1.63% | +3.40% | - | ||
169.3 JPY | +1.43% | +2.77% | - | ||
158.3 JPY | 0.00% | +2.37% | - | ||
115.8 JPY | 0.00% | +2.89% | - | ||
103.4 JPY | 0.00% | +4.10% | - | ||
94.04 JPY | 0.00% | +3.08% | - | ||
39.53 THB | -0.35% | +0.87% | - | ||
36.99 THB | -0.05% | +0.52% | - | ||
24.17 PTS | +0.14% | +2.29% | - | ||
16.51 KRW | 0.00% | +0.10% | - | ||
7.246 CNY | +0.10% | +0.08% | - | ||
1.899 JPY | 0.00% | +2.36% | - | ||
1.249 USD | -0.02% | +0.92% | - | ||
1.069 USD | -0.32% | +0.37% | - | ||
0.731 USD | 0.00% | +0.56% | - | ||
0.6533 USD | +0.02% | +1.82% | - | ||
0.5933 USD | -0.08% | +0.58% | - | ||
0.012 USD | 0.00% | 0.00% | - | ||
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