Profit-Taking Hurts Asian Currencies, Rupee Shines on Election Optimism

Most emerging Asian currencies eased on Monday with some investors taking profits from their gains last week, while the Indian rupee hit a near 10-month high on bets of a strong win for the main opposition party in parliamentary elections.

 

The Chinese yuan fell, putting pressure on regional peers, after the central bank fixed the daily midpoint at its lowest level in eight months.

 

Thailand's baht fell as local shares touched six-week lows amid risk of political violence.

Investors booked profits from the peso as the Philippine currency last week reported the largest weekly gain in nearly two years.

 

The ringgit slid as investors covered short positions in the dollar ahead of the closure of financial markets in Malaysia on Tuesday. Markets in Singapore and Thailand will also be shut for a holiday.

 

The rupee, however, rose as much as 0.9 per cent to 59.51 per dollar, its strongest since July 29, 2013, as local stocks jumped almost 2 per cent. (Read more)

 

Investors bet on a strong victory for the opposition Bharatiya Janata Party, seen as more reform-minded and business friendly.

 

Copyright: Thomson Reuters 2014