Asia FX rebounds

Oct 10): Most Asian currencies turned firmer on Tuesday with the Korean won coming back well-refreshed from a week’s holiday and China’s   resurgent yuan bolstering its regional peers.

The Korean won rose to levels unseen in about two weeks in its first day of trade in the month, while Seoul’s Kospi Index was on a tear, attracting large flows into the currency.

Geopolitical tensions resurfaced over rumours that North Korea may be planning a provocative missile test but countervailing views that further escalation was an unlikely added appeal to the currency.

“When they start threatening to fire off rockets at each other, we know it’s really not going to come to fruition. But investors are gradually sidestepping that risk aversion that came to the market,” said Stephen Innes, Head of Trading APAC at FX broker OANDA.

The regional currencies were buoyed up by China’s yuan heading for its best day in more than a month.

The currency gained over half a percent against the greenback as the central bank set stronger-than-expected official guidance, suggesting authorities are stabilising the currency before the all-important national leadership congress next week.

The Thai baht edged up for the fourth session out of five and the Malaysian ringgit rose marginally.

“Investors are looking at the fact that the Thai baht and the Malaysian ringgit are under positioned right now after the recent sell-off and they are providing opportunities to pick up,” said Oanda’s Innes.

The Edge Markets via 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

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and 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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