Frothy Asia

    CHINESE YUAN 
    The Chinese yuan rose 0.2 percent, reflecting a
broadly weaker dollar and a higher mid-point set by the People's
Bank of China.
     There was muted reaction to solid Chinese trade numbers 
released earlier in the day, although the data reinforced a
growing view that the world's second-biggest economy is holding
its own even though the outlook has dimmed somewhat on the back
of Beijing's crackdown on debt risks.


    SOUTH KOREAN WON
    The won gained the most in the region, up 0.8
percent, its highest in more than two weeks.
    South Korea's central bank held its policy rate at a
record-low 1.25 percent for a 13th straight month on Thursday, a
widely expected decision as policy makers seek to boost subdued
private consumption and keep any thoughts of tightening off the
table for now.
    Stephen Innes, senior trader from Oanda sees this as good
sign as "it will keep the equity markets in a pretty good mood.
A rate hike could have tampered equity markets as much of the
inflow in South Korea has been predicated on the back of low
equity valuations."
    The benchmark South Korea stock index was up 1.2
percent.

 

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)