Deutsche Bank relief, China factory activity support Asia currencies
Trading was subdued overall as several regional financial markets including China and South Korea were closed for holidays.
Indonesia's rupiah advanced after the country enjoyed strong tax amnesty-related inflows last month, with US$250 billion (RM1.03 trillion) of offshore assets declared since the amnesty was launched in July.
The Philippine peso rebounded as the World Bank said the economic growth could exceed its projections of 6.2 per cent for the next two years.
Asian equities rose after a report late on Friday said Deutsche Bank and the US Department of Justice were close to agreeing a settlement of US$5.4 billion to settle charges of selling toxic mortgages, rather than the initially touted US$14 billion. The report has not been confirmed.
China's factory activity expanded again in September, an official survey showed yesterday, suggesting some recent positive momentum may be sustained.
Still, analysts remained doubtful of more appreciation in Asian currencies, given risk sentiment could sour anytime.
“Today's risk-on sentiment may not warrant further gains inemerging Asian FX, given uncertainties over the US elections, the Fed's monetary policy and the German banking sector,” said Qi Gao, FX strategist for Scotiabank in Singapore.
Rupiah
The rupiah found further support as Jakarta shares jumped more than one per cent, well outperforming regional peers.
Indonesia's manufacturing activity expanded further in September with exports orders at a four-year high, a privatesurvey showed earlier.
Philippine peso
The peso gained in thin trading as investors cut bearish bets in the currency, which was driven by political turmoil to its largest monthly loss for 16 years in September.
Foreign investors also turned to net buyers of the Philippine stock market last week after dumping local equities over the previous six consecutive weeks.
Traders, however, were looking to sell the peso on rallies due to concerns over President Rodrigo Duterte as the alliance with the United States becomes more fragile.
“Political premium is still there. An overall risk-off tone is in markets as the Deutsche Bank saga is still far from over,” said a senior Philippine bank trader.
The peso is seen weakening to 49.00 per dollar by the year-end, the trader added. That was the level last hit in September 2009. — Reuters
Contributer : Malay Mail Online | All http://ift.tt/2cWABVQ
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