Most Asian currencies pared this week’s losses after the announcement that investors with 95.7 per cent of Greece’s privately held bonds will participate in a debt swap and a report indicated China’s inflation slowed.
The MSCI Asia-Pacific Index of stocks climbed 0.7 per cent yesterday, capping its biggest two-day advance since January.
Consumer prices in China rose in February at the slowest pace since June 2010, providing scope for the central bank to ease monetary policy and support economic growth. Malaysia’s ringgit fell following a two-day rally, as the country’s central bank left interest rates unchanged for a fifth straight meeting.
| CURRENCY PER DOLLAR | |||
| 5-Mar | 9-Mar | % change | |
| Indonesian rupiah | 9,124.00 | 9,136.00 | -0.13 |
| Chinese renminbi | 6.31 | 6.31 | -0.07 |
| Indian rupee | 49.85 | 49.86 | 0.00 |
| Taiwan dollar | 29.50 | 29.49 | 0.02 |
| Korean won | 1,118.63 | 1,117.90 | 0.07 |
| Hong Kong dollar | 7.76 | 7.76 | 0.07 |
| Singapore dollar | 1.26 | 1.25 | 0.27 |
| Thai baht | 30.65 | 30.56 | 0.29 |
| Malaysian ringgit | 3.02 | 3.01 | 0.40 |
| Compiled by BS Research Bureau Source : Bloomberg | |||
Optimism about the Greek debt swap “was priced into the market before the announcement and the announcement is a nice relief,” said Choong Yin Pheng, manager for economic and bond research at Hong Leong Bank Bhd in Kuala Lumpur. “China is growing relatively strongly and people are hopeful for more supporting policies.”
The rupee appreciated 1 per cent to 49.795 per dollar in Mumbai, trimming its weekly decline to 0.6 per cent, according to data compiled by Bloomberg. Indonesia’s rupiah rose 0.2 per cent to 9,123 per dollar, paring its weekly loss to 0.5 per cent. Taiwan’s dollar climbed 0.1 per cent to NT$29.504 and was down 0.2 per cent from March 2.
The Bloomberg-JPMorgan Asia Dollar Index climbed as much as 0.1 per cent yesterday and closed at 117.42, little changed from the day before. It ended the week lower for the first time since February 10. The index’s 60-day historical volatility dropped to 3.35 per cent, the lowest measure of price swings since August, signaling reduced market uncertainty.
Greek debt swap
Bondholders tendered 152 billion euros ($199 billion) of Greek-law bonds, or 85.8 per cent, after the government offered to swap their holdings for new securities. Another 20 billion euros of foreign-law bonds were also tendered, the finance ministry said in an e-mailed statement yesterday.
The Greek government will activate so-called collective action clauses to achieve full participation from holders of Greek-law bonds. Greece’s use of the clauses triggers payouts on credit-default swaps, the International Swaps and Derivatives Association’s determinations committee said in a statement yesterday.
China’s yuan gained the most in a month after data showed consumer prices in February rose 3.2 per cent from a year earlier, less than the 3.4 per cent estimate of economists in a Bloomberg News survey. The currency climbed 0.09 per cent to 6.3107 per dollar, paring this week’s loss to 0.2 per cent, according to the China Foreign Exchange Trade System.
“Easing inflation is good news for China’s economy as it means more room for policy easing,” said Daniel Chan, chief economist at BWC Capital Markets in Hong Kong. “Expectations that Greece could restructure its debt lifted the yuan.”
