Geopolitical Risk abates , at least today.

The South Korean won crept into green after six
straight sessions of losses on optimism that the geopolitical
crisis won't snowball.
    "They need to have elections by May 10, and a sense of
political stability coming in means the won is a latent buying
opportunity if geopolitics doesn't blow out," said Vishnu
Varathan, a senior economist with Mizuho Bank.
    "The markets therefore won't go aggressively short on this,
because you do have some optimistic opportunists out there."
    The Thai baht and the Singapore dollar got a
lift from the yen's continued rally over the past three
sessions on the back of safe-haven buying. 
    The Chinese yuan, however, was about 0.1 percent
lower at 6.898 against the dollar.
    Data released earlier in the day showed China's producer
price inflation in March cooled for the first time in seven
months as iron ore and coal prices tumbled.
    Analysts, however, say they believe a bigger risk stems from
Chinese authorities struggling to manage banking sector risks
while they try to keep growth rate stable.
    China's banking regulator told banks to conduct
"self-inspections" to determine whether they are using loopholes
in rules to avoid reporting non-performing loans, Reuters had
reported earlier citing official documents.
    The Indian rupee was the biggest loser, down about
0.3 percent, wiping out minor gains made in the previous
session.
    The rupee is overbought and the focus has shifted to less
heavily bought assets, analysts said.
    "I don't see anything fundamental that has actually changed
within the domestic climate at all," said Stephen Innes, a
senior trader for FX broker OANDA.
Reuters 
    

 

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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