Most Asian units firm; Thai baht hits over 6-year high

[snoop1130]

Most Asian units firm; Thai baht hits over 6-year high

By Shreya Mariam Job

 

New baht banknotes featuring Thailand's King Maha Vajiralongkorn are unveiled during a news conference at Bank of Thailand headquarters in Bangkok, Thailand, July 3, 2018. REUTERS/Athit Perawongmetha/File Photo

 

(Reuters) - Most Asian currencies edged higher against the dollar on Wednesday, with the Thai baht hitting a more than six-year peak, as investors held their ground amid a fresh escalation in Sino-U.S. tensions ahead of high-level trade talks.

 

Relations between the world's two biggest economies worsened after the U.S. government widened its trade blacklist to include some of China's top artificial intelligence startups, which drew a sharp rebuke from Beijing.

 

Such altercations just days ahead of the high-level talks dampened hopes of a deal to be struck at the negotiation.

 

"Expectations for the high-level trade talks are very low. Thus, any news that suggests a further deterioration in the U.S.- China relationship has been broadly priced in," said Eugenia Fabon Victorino, head of Asia strategy at Skandinaviska Enskilda Banken.

 

The Chinese yuan <CNY=CFXS> opened slightly weaker before firming 0.1%, while the Singapore dollar <SGD=> and the Taiwan dollar <TWD=TP> remained largely unchanged.

 

Meanwhile, the Indonesian rupiah <IDR=ID> slipped 0.2%, while the Indian rupee <INR=IN> and the Malaysian ringgit <MYR=> weakened marginally.

 

South Korean financial markets were closed for a holiday.

 

THAI BAHT

 

The baht <THB=TH> strengthened 0.3% against the dollar to its strongest since June 2013, with traders shrugging off the central bank's worries about the currency's strength.

 

The baht has been the strongest performer among Asian units this year, driven by the country's hefty current account surplus and fund inflows. It has also shown a resilience to global volatility over the U.S.-China trade spat.

 

PHILIPPINE PESO

 

The peso <PHP=> firmed 0.3% after the central bank governor indicated that last month's rate cut may be the last for the year.

 

However, Governor Benjamin Diokno said the central bank will deliver more cuts in the reserve requirement ratio (RRR) should the inflation outlook continue to improve.

 

Inflation eased in September to the lowest in more than three years, putting this year's inflation target within reach.

 

-- © Copyright Reuters 2019-10-09

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[nobodysfriend]

The baht seems to be a good currency to invest in long term . Better and much less volatile than Euro or sterling or dollar .

 

[POMRAKSIAM]

29 minutes ago, nobodysfriend said:

The baht seems to be a good currency to invest in long term . Better and much less volatile than Euro or sterling or dollar .

 

It would seem that is the case or excuse, nevertheless I have a strange feeling they could "fix" this anytime. (maybe I am wrong)????????

Frankly I am sick of these articles stating same-same not different too often. ????????Must be good click bate because so many folks hurt by this issue.

[Time Traveller]

What exactly is a "firm unit" ?

[Paul Henry]

Don't worry Donald will fix the trade war and its associated economic debarcle.This stable genius states trade wars are easy to win.Please show us how its done so the rest of the world can get on with free trade and open markets.

[Isaan sailor]

Nice job, Thailand.  You've crushed the western currencies. Now your Chinese masters can take over...

[legend49]

1 hour ago, Time Traveller said:

What exactly is a "firm unit" ?

My wife has two bigger ones after implant surgery?

[onera1961]

OMG. My weekly allownace of $500USD dropped below 15,000 BHT. It is now 14,953.05

 

[MartinKal]

3 hours ago, POMRAKSIAM said:

It would seem that is the case or excuse, nevertheless I have a strange feeling they could "fix" this anytime. (maybe I am wrong)????????

Frankly I am sick of these articles stating same-same not different too often. ????????Must be good click bate because so many folks hurt by this issue.

We have to remember that the audience is The Thai Nation and so readers who assets are in baht.