BLBG: Asian Currencies Strengthen for Third Day, led by Rupee, as Oil Stabilizes
Asian currencies strengthened, led by India’s rupee and Malaysia’s ringgit, after an overnight drop in oil prices boosted investor confidence in emerging-market assets.
The Bloomberg-JPMorgan Asia Dollar Index rose for a third day after Saudi Arabia offered to make up for crude supplies lost because of the unrest in Libya. A factory-output gauge in China increased by more than forecast in a Bloomberg survey, brightening the outlook for the region’s exports. The MSCI Asia- Pacific Index of regional shares gained after oil fell 0.9 percent yesterday.
“The rate of increase in oil prices has certainly stalled and equity-market sentiment has also stabilized,” said Jonathan Cavenagh, a currency strategist in Singapore at Westpac Banking Corp.
The rupee climbed 0.5 percent to 45.0513 per dollar as of 2:12 p.m. in Mumbai, according to data compiled by Bloomberg. The ringgit appreciated 0.4 percent to 3.0360, the Taiwan dollar gained 0.3 percent to NT$29.660 and the Philippine peso strengthened 0.3 percent to 43.445.
The Organization of Petroleum Exporting Countries’ crude- oil output fell in February as Libya’s production dropped to an eight-year low, slipping 200,000 barrels a day to 1.385 million, according to a Bloomberg News survey. The price of oil rose 0.1 percent to $97.10 today.
Manufacturing Index Rises
The Purchasing Managers’ Index fell to 52.2 from 52.9 in January, the China Federation of Logistics and Purchasing said on its website today. The reading compares with the median forecast of 52.1 in a Bloomberg News survey of 14 economists.
The ringgit approached a 13-year high after economists surveyed by Bloomberg estimated a manufacturing index in the U.S. rose last month to the highest level since May 2004.
The Institute for Supply Management’s index rose to 61 in February, from 60.8 in January, according to the median estimate of economists in a Bloomberg News survey before data due today. Readings greater than 50 signal growth.
“The economic data provides some support for the market and we see sustained confidence among foreign investors in the ringgit,” said Mohd. Yazid Safuan, head of treasury sales and trading at Al Rajhi Banking & Investment Corp. in Kuala Lumpur.
Taiwan’s dollar rose the most in a month on speculation exporters took advantage of a decline last week to repatriate overseas income. The currency slid 1.2 percent in the five days ended Feb. 25 as exchange data showed global funds sold $1.1 billion more Taiwanese shares than they bought during the period.
Indonesian Prices Rise
“It’s mainly about trade-related transactions for the currency,” said Tarsicio Tong, a Taipei-based currency trader at the Union Bank of Taiwan. “Most investors are still staying on the sidelines, waiting for more signals.”
Consumer prices in Indonesia rose 6.8 percent in February from a year earlier, compared with a 7 percent gain in January, according to official data released today. That was below the 7.1 percent median estimate in a Bloomberg survey of economists.
Indonesia’s rupiah was little changed at 8,816 per dollar after earlier gaining 0.1 percent.
Elsewhere, Thailand’s baht was little changed at 30.58 per dollar, according to data compiled by Bloomberg. China’s yuan rose 0.02 percent to 6.5703, while Singapore’s dollar strengthened 0.1 percent to S$1.2702. Financial markets in South Korea are shut for a holiday.
To contact the reporter for this story: Lilian Karunungan in Singapore at at lkarunungan@bloomberg.net.
To contact the editor responsible for this story: James Regan at jregan19@bloomberg.net.
