Loading...

Home pages - full list (A-Z)

Bets Against IDR, SGD and INR Increase

A Reuters survey of investors this week has shown increased bearishness on the Indonesian rupiah, Singapore dollar and Indian rupee. Each of the Asian currencies has lost value this year amid concerns for global trade and following emerging market currency crises in Argentina and Turkey.

#News #IDR #INR #SGD #USD
Email share     Facebook     LinkedIn    Twitter

Among emerging market central banks, Bank Sentral Republik Indonesia has been one of the most vigilant this summer in terms of its attempts to halt currency weakness. The bank has hiked interest rates several times since May to a two-year high of 5.5 percent, but as yet, has been unable to curb the rupiah’s slide.

On Friday, as the dollar heads higher ahead of the potentially headline-grabbing Jackson Hole symposium, the rupiah weakened to Rp.14,625. It nears its cheapest levels against the dollar since 2015 and has lost 7.2 percent of its value this year.

The Indian rupee remains 2018’s worst performing Asian currency, having weakened by more than 9 percent.

The rupee struck an all-time low of 70.80 to the dollar on August 15th and faces an additional threat from higher oil prices. Being India’s largest import, a higher oil price worsens the country’s trade deficit and raises inflation, which is already above target. Oil’s stumble over the past six weeks has helped the rupee recover into the low 70s, where it remains as of writing.

In Singapore, economic growth will fall sharply in the second half of the year, economists warn. Singapore’s GDP grew 4.2 percent between January and June based on data from the Ministry of Trade and Industry, but July-December growth is likely to slow to sub-2 percent levels.

Versus the US dollar, the Singapore dollar weakened to S$1.3819 on August 15th – its cheapest level in thirteen months – but has since recovered to S$1.3730; it has lost 2.6 percent of its value this year.

The Singapore dollar is, however, breaking important levels against the politically-driven Australian dollar. The AUD/SGD cross rate is back below parity, at S$0.9975.

 

Further Reading

 

Disruptors Challenging Australian Banks in Forex Price and Service: ACCC Report

Key Takeaways from the ACCC inquiry into currency conversion services. BestExchangeRates referenced among comparison sites playing an important role in customer awareness of the excessive currency margins charged by banks.

Last update: 1 Oct, 2019

AUD/GBP Between a Rock and a Hard Place – USD Strength

AUD/GBP versus AUD/USD and GBP/USD

Both the Australian dollar and British pound sterling have had a hard time of late caught between the rock of the China/US trade war and the Brexit hard place.

Last update: 27 Aug, 2019

Australia Cuts Interest Rates to Record Low

RBA Australian dollar AUD currency news and forecasts

The RBA has cut Australian interest rates to a record low of 1 percent in an effort to boost inflation. The Australian dollar is slightly stronger following the widely expected decision but is expected to lose 5–7 percent of its value before year-end.

Last update: 14 Aug, 2019

  

Posted to: News

 
 
Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product.
 

Get a Better FX Deal when you Send and Spend Abroad.

 

Do NOT follow this link or you will be banned from the site!