The Indonesian rupiah was among the top losers in mixed Asian currency markets on Thursday as turbulence at Credit Suisse intensified fears of a full-blown global banking crisis, driving investors away from risk sensitive emerging markets.

The rupiah weakened about 0.4% and the Malaysian ringgit snapped a five-day winning streak by depreciating 0.5%, while Thailand’s baht appreciated 0.4%.

Christopher Wong, currency strategist at OCBC, said the trading narrative has shifted very rapidly from expectations of “higher rates for longer” to “flight-to-safety”.

“We continue to caution that if global sell-off extends, then risk proxy FX such as Asia excluding Japan can be subjected to downward pressure.”

Credit Suisse’s largest investor, Saudi National Bank at 9.88%, said it could not raise its stake in the Swiss bank any further on regulatory grounds, re-igniting jitters among investors about the resilience of the global banking system just days after the collapse of Silicon Valley Bank(SVB) in the USInvestors rushed to safe haven currencies such as the US dollar and the Japanese yen, with the yen appreciating 0.6% against the dollar and the greenback marginally lower after jumping nearly 1% in the previous session.

Some Southeast Asian countries so far have flagged no significant or limited impact from the problems facing some banks in the United States as well as Credit Suisse. Malaysia on Wednesday said its banks had limited exposure to SVB.

Among currencies, the Thai baht led gains, while the Indian rupee and South Korean won depreciated 0.2% and 0.7%, respectively.

Asian currencies climb as fears of rapid Fed hikes ease

Benchmark bond yields in the Philippines were unchanged at 6.218%, while those in Indonesia slipped 2.7 basis points to 6.729%, lowest since Feb. 21.

Stocks across the region, notably financials, continued to lose ground. Equities in Manila fell as much as 1.9% to their lowest in four months, while shares in Thailand lost over 1%.

The benchmark index in Indonesia slipped 0.8%.

Bank Indonesia is set to announce its latest monetary policy rate decision later in the day. Expectations are of no change to the key interest rate of 5.75% for the rest of the year, according to a Reuters poll.

Highlights

** China Feb new home prices rise at fastest pace since July 2021

** Chinese suppliers race to Vietnam as COVID let-up opens escape route from Sino-US trade war

** Japan registers two straight years of export growth in February, outlook less rosy