* Asian currencies are being hit hard by local outbreaks * The Thai baht is on a four-week losing streak * Philippine stocks are down 2.5 percent
Anushka Trivedi contributed to this article.
Reuters, July 9 – The Thai baht fell over 1% on Friday, leading Asian currencies lower as markets became risk fearful as the highly contagious Delta form of coronavirus spread both at home and abroad, casting a pall over global economic recovery.
The baht fell to 32.72 per dollar, its lowest level since the COVID-19 outbreak in April of last year, while the South Korean won fell for a third day after severe restrictions were extended in some parts of the country.
The rupiah in Indonesia, the ringgit in Malaysia, and the Singapore dollar all fell 0.1 percent to 0.2 percent.
Recent severe outbreaks and the slow pace of vaccination have put pressure on Thailand, Malaysia, Indonesia, and South Korea, but the quick rise in coronavirus cases in industrialized nations has sparked fears of future lockdowns that might stymie global trade.
“With the US dollar on the increase, broad risk aversion became even more apparent in the foreign currency market…
Because of the worsening COVID outbreaks in the United States, regional (Asian) currencies have taken the brunt of the damage “In a note, Maybank analysts stated.
“The state of emergency imposed for Tokyo on Thursday could be the catalyst, emphasizing the complexities of overcoming the Delta variation.”
The baht has been falling for four weeks and is the region’s worst performing currency this year, as Thailand’s economy is reliant on tourism, which is in jeopardy due to recent travel restrictions imposed in the wake of Thailand’s record COVID-19 deaths.
Since the Bank of Thailand lowered its growth projection for the economy last month, forecasting that it would only recover to pre-pandemic levels by 2023, confidence in the baht has deteriorated.
Most Asian stocks fell in accordance with the shaky market environment, with the Philippine stock index leading the way down, falling 2.5 percent to its lowest level since March 19.
South Korean stocks have lost 1.5 percent this week, putting them on course for their lowest week since February. Taiwanese and Indian stocks both lost 1.1 percent and 0.6 percent of their value.
Malaysian equities increased 0.6 percent, breaking a five-day losing run and recouping some of the losses suffered in the previous session, when they fell over 2% due to rising political concerns in the country.
HIGHLIGHTS
** Thailand’s Prime Minister Prayuth Chan-ocha will consider new COVID-19 restrictions at a meeting on Friday ** In the Philippines, JG Summit Holdings Inc is down 4.1 percent, while Aboitiz Equity Ventures Inc is down 3.8 percent. ** Indonesian 10-year benchmark yields were up about 4.1 basis points at 6.572 percent Asia stock indexes and currencies at 0435 GMT
INDEX STOCKS DAILY percent STOCKS YTD percent COUNTRY FX RIC FX DAILY percent FX YTD percent COUNTRY FX RIC FX DAILY percent FX YTD percent COUNTRY FX RIC FX DAILY percent FX YTD percent COUNTRY FX
-0.11 -6.07 -1.75 0.66 0.66 0.66 0.66 0.66 0.66 0.66 0.66 0.66 0.66 0.66 0.66 0.
+0.09 +0.67 -0.69 0.81 China China China China China China China China China China China China China China China China China China China China China
-2.14 -0.51 11.92 India +0.06
Indonesia -0.17 -3.47 0.02 1.03 Indonesia -0.17 -3.47 0.02 1.03 Indonesia -0.17 -3
Malaysia -0.13 -3.95 0.60 -6.73 Malaysia -0.13 -3.95 0.60 -6.73 Malaysia -0.13 -3
Philippines +0.34 -4.06 -2.48 -5.41 Philippines +0.34 -4.06 -2.48 -5.41 Philippines +0.34 -4.
S. Korea -0.35 -5.47 -1.70 11.27 S. Korea -0.35 -5.47 -1.70 11.27 S. Korea -0.35 -5.47
Singapore -0.09 -2.41 0.36 9.67 Singapore -0.09 -2.41 0.36 9.67 Singapore -0.09 -2
Taiwan -0.08 +1.52 -1.31 19.68 Taiwan -0.08 +1.52 -1.31 19.68 Taiwan -0.08 +1.52
Thailand -0.67 -8.32 0.33 6.86 Thailand -0.67 -8.32 0.33 6.86 Thailand -0.67 -8
(In Bengaluru, Anushka Trivedi reported; Tom Westbrook contributed additional reporting; Sam Holmes edited.)/n
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