Highlight Ringgit leads Asia FX gains on crude oil's rebound

by **Cals** Thu 07 Apr 2016, 01:08

Highlight

[size=28]Ringgit leads Asia FX gains on crude oil's rebound

By Reuters / Reuters | April 6, 2016 : 3:07 PM MYT
SINGAPORE (April 6): Malaysia's ringgit led gains among emerging Asian currencies on Wednesday, as a rebound in oil prices helped risky assets including regional equities recover some of the previous session's losses.
Most emerging Asian currencies started the day weaker, as growing concerns over global economic recovery hurt risk appetites.
The U.S. trade deficit widened more than expected in February, indicating growth weakened further in the first quarter. Also, International Monetary Fund Managing Director Christine Lagarde said global growth is fragile and weak.

While China's service sector strengthened in March, employment fell for the first time in more than 2-1/2 years, a private survey showed.
However, regional currencies changed direction, as crude futures extended gains on hopes for an agreement among oil exporters to freeze output.
"We are cautious for potential short-term noise in the lead-up to the oil producers' meeting on April 17. That could lift USD/Asia FX," said Christopher Wong, senior FX strategist for Maybank in Singapore, referring to gathering of crude exporters in Qatar.
"But this is likely to be temporary and we see opportunity to add short USD/Asia FX positions."
Most emerging Asian currencies have risen so far this year, as the U.S. Federal Reserve is seen as cautious on raising interest rates.

Ringgit
The ringgit found further support from stronger-than-expected Malaysia trade data and hit a session high of 3.8950 per dollar.
Malaysia's exports in February rose 6.7% from a year earlier, more than double economists' forecast for 3.1% growth, thanks to higher shipments of electrical and electronic products.

Won
South Korea's won started the day softer, tracking earlier weakness in global risky assets.
The won reversed the losses as foreign investors turned into net buyers of Seoul shares and on exporters' demand for settlements. That caused offshore funds to unwind bearish bets on the won.
Still, traders stayed wary of possible dollar demand stemming from dividend payments by local companies to foreign shareholders.
  CURRENCIES VS U.S. DOLLAR
  Change on the day at 0540 GMT

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Currency	Latest bid	Previous day	Pct Move
Japan yen	110.31	110.35	+0.04
Sing dlr	1.3533	1.3552	+0.14
Taiwan dlr	32.470	32.378	-0.28
Korean won	1154.17	1155.10	+0.08
*Baht	35.30	35.30	0.00
Peso	46.205	46.260	+0.12
Rupiah	13213	13215	+0.02
Rupee	66.63	66.46	-0.26
Ringgit	3.9100	3.9245	+0.37
Yuan	6.4768	6.4756	-0.02

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Change so far in 2016
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Currency	Latest bid	End prev year	Pct Move
Japan yen	110.31	120.30	+9.06
Sing dlr	1.3533	1.4177	+4.76
Taiwan dlr	32.470	33.066	+1.84
Korean won	1154.17	1172.50	+1.59
Baht	35.30	36.00	+1.98
Peso	46.21	47.06	+1.85
Rupiah	13213	13785	+4.33
Rupee	66.63	66.15	-0.72
Ringgit	3.9100	4.2935	+9.81
Yuan	6.4768	6.4936	+0.26

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* Thai financial markets are closed for a holiday.
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