Asian FX tumbles after turmoil in global banking system returns

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Asian currencies fell at the beginning of the week along with the dollar

It held firm on Monday after Germany’s largest bank reignited fears of a broader banking crisis

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The cost of insuring its bonds against default has jumped.

The thailand baht was the region’s lowest decliner, down 0.3%, with

The Philippine peso slipped 0.2% after rising about 0.7% last week.

The Singapore dollar and the South Korean won also fell while it declined

The Indonesian rupiah fell by about 0.2 percent, in its second consecutive session of losses.

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Investors are still cautious about the current banking situation, and so are we

Josh Gilbert said:

Market Analyst for eToro.

Markets were affected globally with Deutsche Bank’s credit default swaps, a form of insurance

For bondholders, it has risen to its highest level in more than four years, highlighting investor concerns

On the health of European banks.

The releases at Deutsche Bank come a week after Swiss authorities oversaw a credit bailout

Suisse, with UBS agreeing to buy out its competitor, calmed the market’s nerves for a few days.

In an effort to restore confidence, the US government body banking in the country

The system was “sound and resilient” despite the pressure on some institutions, after a collapse

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Silicon Valley Bank and Signature Bank earlier in the month.

The good news for Asian currencies is that bank issuances abroad are unlikely to impact

Therefore, Asia’s influence on emerging currencies is limited. Asian banks are much more diversified, with

Different business models and different risk profiles.

Adding to the optimistic outlook for riskier emerging Asian assets, Barclays analysts said in a

Note said, “The elasticity of domestic demand and faster reopening in China are improving

Economic outlook for the region, despite external headwinds.

In the region, the Bank of Thailand (BOT) is expected to raise interest rates by 25 basis points

Point on Wednesday in what would be its fifth consecutive rate hike, then stuck to its policy

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A Reuters poll showed that the price is stable until next year in its battle against inflation.

Unlike its neighbors Malaysia and Indonesia, which have paused interest rate hikes though

Inflation remaining above target, the BOT has indicated that its tightening cycle has not yet arrived

more.

Stocks in Asia were mixed, with shares in Singapore up 1%, while stocks in

The Philippines and Indonesia fell 0.4% and 0.5%, respectively.

Highlights:

** China’s industrial profits fell in January and February as the pain of the Corona virus persisted

** Thai Prime Minister Prayut is running for re-election in May

** The Philippine central bank focuses on inflation. The exchange rate is not a problem

Asia Stock

Indexes f

currencies in

0423

GMT

COUNTRY FXFX FX INDEX STOCKS

RIC Daily YTD % YTD %

% Daily

%

Japan +0.15 +0.47 0.38 5.38

China -0.10 +0.37 -1.05 4.60

India +0.25 +0.54 0.42 -6.02

Indonesia -0.15 +2.58 -0.49 -1.77

Malaysia +0.00 -0.59 0.03 -6.37

Philippines -0.19 +2.37 -0.43 0.11

South Korea -0.25 -2.55 -0.21 7.76

Singapore -0.06 +0.56 0.99 -0.21

Taiwan +0.09 +1.14 -0.19 12.35.001

Thailand -0.34 +0.82 0.18 -4.43

(Reporting by Jaskiran Singh in Bengaluru; Editing by Sonali Paul)