AGL 38.15 Increased By ▲ 0.90 (2.42%)
AIRLINK 121.51 Decreased By ▼ -2.51 (-2.02%)
BOP 5.85 Increased By ▲ 0.23 (4.09%)
CNERGY 3.75 Increased By ▲ 0.03 (0.81%)
DCL 8.40 Increased By ▲ 0.15 (1.82%)
DFML 40.89 Increased By ▲ 0.62 (1.54%)
DGKC 84.60 Decreased By ▼ -1.14 (-1.33%)
FCCL 32.70 Increased By ▲ 0.10 (0.31%)
FFBL 65.50 Decreased By ▼ -1.00 (-1.5%)
FFL 10.05 Decreased By ▼ -0.11 (-1.08%)
HUBC 103.80 Increased By ▲ 0.70 (0.68%)
HUMNL 13.25 Decreased By ▼ -0.15 (-1.12%)
KEL 4.43 Increased By ▲ 0.18 (4.24%)
KOSM 7.09 Decreased By ▼ -0.09 (-1.25%)
MLCF 37.50 Decreased By ▼ -0.80 (-2.09%)
NBP 60.25 Decreased By ▼ -4.76 (-7.32%)
OGDC 172.25 Decreased By ▼ -1.55 (-0.89%)
PAEL 24.80 Decreased By ▼ -0.10 (-0.4%)
PIBTL 5.70 Decreased By ▼ -0.10 (-1.72%)
PPL 141.69 Decreased By ▼ -1.01 (-0.71%)
PRL 22.72 Decreased By ▼ -0.26 (-1.13%)
PTC 14.74 Decreased By ▼ -0.37 (-2.45%)
SEARL 64.56 Decreased By ▼ -0.79 (-1.21%)
TELE 7.14 Increased By ▲ 0.14 (2%)
TOMCL 35.50 Decreased By ▼ -1.41 (-3.82%)
TPLP 7.29 Decreased By ▼ -0.05 (-0.68%)
TREET 14.20 Decreased By ▼ -0.08 (-0.56%)
TRG 51.75 Increased By ▲ 2.05 (4.12%)
UNITY 26.60 Increased By ▲ 0.45 (1.72%)
WTL 1.22 Decreased By ▼ -0.02 (-1.61%)
BR100 9,483 Decreased By -118.3 (-1.23%)
BR30 28,371 Decreased By -202.1 (-0.71%)
KSE100 88,967 Decreased By -1319.8 (-1.46%)
KSE30 27,827 Decreased By -515.9 (-1.82%)

An unexpected interest rate cut from the Bank of Korea sent the won down on Thursday, pulling away from a 2-month high, while the Thai baht slid as the government stepped up pressure on the central bank to cut interest rates. Foreign exchange authorities in Seoul were also spotted intervening to sell won, especially in late trade, which pushed it further down, traders said.
In contrast, the Taiwan dollar rose to the strongest level in more than three months on exporters' and foreign financial inflows. Not to be outdone, the Philippine peso also notched a seven-week high on inflows from remittances and on improving sentiment stemming from encouraging global economic data. The positive mood had earlier helped the won advance 0.3 percent to 1,083.0 per dollar, its strongest since March 6.
However, it turned down after the BoK cut its base rate by 25 basis points to 2.50 percent, its lowest since early 2011, defying market expectations of steady outcome. The unexpected move came as the government warned of the won's sharp rise, especially against the yen amid growing worries that South Korean exporters are losing their competitive edge to Japanese rivals enjoying a lift from a weak currency.
Earlier, the won strengthened to 10.9383 to the yen, its strongest since September 2008, and then turned south after the BOK decision to lose 0.8 percent to 11.0493. "Exchange rates, especially yen/won, is definitely a factor in today's BOK decision. I doubt how much small- and medium-sized enterprises can tolerate a yen/won level below 11," said Yuna Park, a currency and bond analyst at Dongbu Securities in Seoul. The baht fell as investors continued to reduce bullish positions in the best performing emerging Asian currency in 2013.
Thailand Finance Minister Kittirat stepped up pressure on the central bank to cut interest rates, saying it should take baht strength into account when setting policy and not just inflation. The Malaysian ringgit earlier hit a 21-month high of 2.9590 per dollar as risk sentiment improved. But the Malaysian currency turned weaker as investors took profits on caution over possible intervention by the central bank around 2.9600. The ringgit came under further pressure after industrial production in March fell 0.2 percent from a year earlier, missing expectations of a 0.7 percent growth. The Taiwan dollar advanced 0.5 percent to 29.341 to the US dollar, its strongest since January 28, on inflows from exporters and offshore funds.
Local exporters bought the island's currency when it fell below 29.400, traders said. The central bank was spotted buying the Taiwan dollar below the 29.500 level and selling when it rose above 29.350 in order to stabilise the currency, traders said. The Philippine peso rose 0.2 percent to 40.735 per dollar, its strongest since March 21 on inflows from remittances. But it gave up much of the earlier gains on dollar demand from local corporates and caution over possible central bank intervention. "They are still expected towards 40.70 today and more so at 40.55," said a senior Philippine bank trader in Manila, referring to the possibility of central bank intervention.

Copyright Reuters, 2013

Comments

Comments are closed.