Asian Currencies bounce on buoyant risk sentiment

The IMF said emerging economies could face the double threat of rising protectionism as it could reduce demand for their exports, and that U.S. inflation and faster interest rate hikes could spark capital outflows, making it harder for them to service external debt.

Stephen Innes, a senior trader at OANDA, said in a note investors are likely to feed off a supportive environment for risk assets, which markets expect to continue following the second round of French elections on May 7.

However, he added traders will need to continue to grapple with the possibility of Trump headlines, which could disrupt confidence.

MALAYSIAN RINGGIT

Chee Sing Lim of RHB Research said the ringgit is catching up with Monday’s relief rally following the French poll.

The currency was also helped by a rise in central bank reserves in mid-April.

Meanwhile, a conditional settlement deal between Malaysia’s state fund 1Malaysia Development Bhd and Abu Dhabi state fund IPIC has also boosted sentiment

 

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

Latest posts by Stephen Innes (see all)