Thai baht falls, Asian currencies rattled by Trump’s BRICS warning
EMERGING-MARKETS/ASIA:EMERGING MARKETS-Thai baht falls, Asian currencies rattled by Trump's BRICS warning
* Thai baht worst performer among Asian currencies * Singapore stocks hit highest level since November 2007 By Sherin Sunny Dec 2 - Asian currencies slipped on Monday, with the Thai baht declining the most, after U.S. President-elect Donald Trump's warned BRICS members to not commit to a new currency or face tariffs, rattling emerging markets. The Thai baht lost as much as 0.7% of its value - its worst day since mid-November - and the worst performer among Asian currencies for the day so far. Malaysia's ringgit and Singapore's dollar also lost around half a percent. An MSCI gauge of emerging market currencies lost as much 0.4% during Asian trading hours to hit its lowest intraday level since Nov. 14. The U.S. dollar was up 0.2% at around 106.28 against a basket of major currencies. Trump on Saturday demanded that BRICS member countries commit to not creating a new currency or supporting another currency that could replace the dollar or face 100% tariffs. BRICS is a group of major emerging economies - that includes Brazil, Russia, India, China and South Africa and more recent members Egypt, Ethiopia, Iran, and the United Arab Emirates. Saudi Arabia is still considering its formal invitation. "There is an ongoing push to reduce reliance on the USD and it remains to be seen if Trump can do anything to stop or delay this," analysts at Maybank wrote in a note. Yeap Jun Rong, a market strategist at trading platform IG, said while the floated 100% tariff was likely be just a warning for now, any mention of tariffs may prompt an immediate upside reaction in the U.S. dollar. Asian currencies and equities have been under pressure over the last month amid concerns about the impact of Trump's return to the White House and his pledges of tariffs on key trading partners, including China. Equities in emerging Asian economies were trending higher for the day, following record high closes on Wall Street. Stocks in Singapore rose as much as 0.9% to their highest level since November 2007, lifted by property and banking firms. "Singapore's growth prospects are bright despite a plethora of internal constraints and external uncertainties", analysts at DBS said in a note, attributing the economy's resilience to strong foreign direct investments, investment-related policy foresight, and stability. Elsewhere, stocks in Manila and Taipei climbed as much as 1.6% and 2.3%, while those in Malaysia and Thailand were largely unchanged. HIGHLIGHTS: ** Indonesia's November inflation eases to 1.55% y/y ** China's factory activity expanded at the fastest pace in five months in November, a survey shows Asian stocks and currencies as at 0442 GMT COUNTRY FX RIC FX FX INDEX STOCKS STOCKS DAILY YTD % DAILY % YTD % % Japan -0.52 -6.29 0.78 15.67 China -0.25 -2.31 1.02 12.96 India -0.18 -1.69 0.02 11.06 Indonesia -0.37 -3.17 -0.18 -2.36 Malaysia -0.49 2.87 0.07 9.67 Philippine -0.21 -5.71 1.63 4.21 s S.Korea -0.46 -8.19 0.69 -6.87 Singapore -0.47 -1.93 0.39 15.86 Taiwan -0.42 -5.70 1.96 26.59 Thailand -0.64 -0.94 -0.02 0.80
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First Published:2 Dec 2024, 11:24 AM IST
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