Thai baht leads gains in Asian fx, peso slips as Philippines’ inflation eases

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The Thai baht made the strongest gains

among major Asian currencies against a broadly weaker US

dollar at the end of a week in which trade in the region was

largely subdued by the Lunar New Year holiday.

The Philippine peso bucked the trend in Asia, weakening

after data showed inflation eased in January from the previous

month, and prompted dovish comments from the central bank

governor.

Otherwise, the baht led the way, firming 0.4% on

Friday against a US dollar whose index against other major

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currencies has dropped 2% this week – its biggest weekly

fall since March 2020.

“The major factor for strength in THB lately is the falling

USD which continues to move lower due to the somewhat surprised

hawkish tone from the ECB last night,” Poon Panichpibool,

Markets Strategist at Krung Thai Bank said.

“The market seems to have reversed back to risk-on mode,”

Panichpibool added.

Thailand’s investment agency also expected total investment

pledges for 2022 to be close to last year or higher, if the

The COVID-19 situation improves and the global economy continues to

expand.

The Philippine peso slipped 0.1%, and was on track

for its fourth consecutive weekly fall.

“PHP likely reacting to dovish statements from BSP Governor,

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Benjamin Diokno, after the inflation report,” Nicholas Mapa,

Senior Economist at ING said.

“Diokno suggested that he can keep rates unchanged even in

the face of the Fed rate hike cycle with the PHP taking the

heat.”

Bangko Sentral ng Pilipinas (BSP) said it sees “ample scope

to keep a patient hand” on its various policy levers, while

keeping an eye on potential risks to inflation and the financial

system.

The South Korean won rose 0.6% after the

country’s inflation came in at a decade high, boosting the case

for more interest rate hikes this year.

South Korean stocks rose 0.8% and were on track to

close their best week in a year.

Other major Asian currencies made marginal gains, with

Singapore dollar and Malaysian ringgit firming

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0.1% each.

HIGHLIGHTS

** Indonesian 10-year benchmark yields are up 1.09 basis

points at 6.454%​​

** LG Chem climb 0.9% and Naver

advanced 1.6% to boost KOSPI

Asia stock indexes and

currencies at 0416 GMT

COUNTRY FX RIC FX FX INDEX STOCKS STOCK

DAILY YTD % DAILY % S YTD

% %

Japan +0.06 +0.17 +0.2 -5.2

China

India +0.00 -0.71 0.13 1.32

Indones +0.01 -0.86 0.31 1.87

ia

Malaysia +0.14 -0.29 -0.23 -2.89

a

Philipp -0.16 -0.04 0.68 4.36

ines

S.Korea

Singapo +0.07 +0.47 0.19 6.36

re

Taiwan 0.00 -0.50 0.00 -2.99

Thailan +0.42 +1.18 0.40 1.09

d

(Reporting by Indranil Sarkar and Savyata Mishra in Bengaluru;

Editing by Simon Cameron-Moore)