Strong commodities and economic recovery improve outlook for Indonesian rupiah – survey
- Bearish outlook eases on most Southeast Asian currencies
- Sentiment worsens further on Indian rupee
- Singapore dollar and Chinese yuan rise
Oct. 21 (Reuters) – Investors became extremely bullish on the Indonesian rupiah as the country’s growth outlook improved alongside the surge in commodity prices, while sentiment on the Chinese yuan turned positive again, said a Reuters investigation revealed Thursday.
Sentiments on the Singapore dollar turned positive, while bearish views on the South Korean won, Philippine peso and Malaysian ringgit eased, according to a survey of nine analysts and fund managers.
The rupee, which is among the best performing currencies in the region with only a marginal decline so far this year, has been supported by a heavy trade deficit due to soaring coal prices and improving conditions. economic. Read more
Indonesia, Southeast Asia’s largest economy and the world’s largest exporter of thermal coal, is benefiting from a global energy crisis that is pushing coal prices to record highs due to an increase in the consumption in the context of supply disruptions. Read more
The Reuters investigation was carried out before coal plunged into China’s vow that it was looking for ways to curb prices. The rupee fell on Thursday due to the same concerns, but analysts remain optimistic about its long-term outlook. Read more
Investor sentiment towards the Chinese yuan improved significantly after rising to a six-month high this week, as markets bet authorities would limit the fallout from debt-laden developer China Evergrande Group (3333.HK).
Yuan rise comes despite manufacturing power facing a sharp slowdown in the activity of factories, with power cuts and a crisis in the real estate market weighing on economic growth.
In Southeast Asia, reopening economies and easing social restrictions have boosted activity as the Philippines, Malaysia, Thailand and Indonesia have all lifted restrictions on travel and social gatherings. Read more
This prompted foreign investors to take advantage of the region’s growth prospects and became net buyers of Asian bonds for the sixteenth consecutive month in September.
Meanwhile, bearish views on the Indian rupee have risen, prompted by soaring oil prices, with India being the world’s third-largest consumer of oil. The rupee has lost almost 1% this month so far.
Sameer Manekar report in Bengaluru; edited by Uttaresh.V
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