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* The Baht is in its fifth week of collapse. * COVID-19 instances in Indonesia, Thailand, and Malaysia are at an all-time high.
* Gained firms the day after the BOK’s hawkish signals Stocks in the Philippines have fallen as a result of the discovery of a Delta variation, which has prompted tighter restrictions.
Anushka Trivedi contributed to this article.
16 JULY (Reuters) – On Friday, the Thai baht fell to 15-month lows as Asian currencies fell on fears over stubbornly rising COVID-19 cases in the area, clouding the outlook for the region’s commerce and tourism-dependent economies.
The baht was down 0.3 percent, putting it on track for its sixth consecutive week of losses, with a more than 5% drop in that time. Over the same time period, Bangkok stocks have lost over 4% of their value.
The rupiah of Indonesia, the peso of the Philippines, and the ringgit of Malaysia all fell by 0.1 percent, although losses were limited as the greenback slipped marginally.
As the trade-dependent Southeast Asia continues to be struck severely by viral curbs amid a sluggish vaccination rate, Malaysia, Indonesia, and Thailand reported record coronavirus infections, while the Philippines discovered its first Delta variant case.
“Their ongoing troubles with COVID-19 have had a negative influence on sentiment across multiple asset classes, with most Asian currencies worse against the dollar on a month-to-date basis,” said Han Tan, Exinity’s chief market analyst.
“Southeast Asia must demonstrate a strong ability to control the expansion of the Delta variety, which will serve as the foundation for the region’s economic openness.”
Thai markets are particularly shaky after the country’s central bank warned of missed annual growth estimates, owing to the country’s reliance on tourism, which analysts believe will not be recovered by October as planned by the government.
The won rose 0.2 percent the next day, defying the odds, after South Korea’s central bank indicated that a rate hike was on the way. A raise of 25 basis points is expected by next month or October, according to several analysts.
Despite increased COVID-19 infections, the won is strengthening as the country is seen as more positioned to handle the outbreak due to tighter restrictions and a vaccination campaign, according to Maybank senior FX strategist Christopher Wong.
Philippine stocks fell 0.5 percent as officials reintroduced stronger coronavirus controls in some places. Within two weeks, the index was on course to lose about 5.5 percent.
Malaysian equities fell 0.3 percent, putting them on track for a fourth week of losses.

HIGHLIGHTS

** Malaysia’s 10-year benchmark yield fell around 1.70 basis points to 3.22 percent. ** Indonesia’s 10-year benchmark yield fell 1.2 basis points to 6.437 percent. ** Top index losers in the Philippines include GT Capital Holdings Inc, which fell 5.2 percent, and Bloomberry Resorts Corp, which fell 4.9 percent.

At 0710 GMT, Asian stock indices and currencies were trading.
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
Japan -0.07 -6.09 -0.98 2.04 Japan -0.07 -6.09 -0.98 2.04 Japan -0.07 -6
-0.06 +0.97 -0.70 1.92 China China China China China China China China China China China China China China China China China China China China China China
India -0.05 -2.02 -0.20 13.66 India -0.05 -2.02 -0.20 India -0.05 -2.02
Indonesia -0.14 -3.17 0.24 1.38 Indonesia -0.14 -3.17 0.24 1.38 Indonesia -0.14 -3
Malaysia -0.05 -4.35 -0.37 -6.88 Malaysia -0.05 -4.35 -0.37 -6.88 Malaysia -0.05 -4.
Philippines -0.02 -4.29 -0.51 -6.25 Philippines -0.02 -4.29 -0.51 -6.25 Philippines -0.02 -4
S. Korea +0.18 -4.68 -0.28 14.04 S. Korea +0.18 -4.68 -0.28 14.04 S. Korea +0.18 -4.68
Singapore +0.03 -2.45 0.33 10.77 Singapore +0.03 -2.45 0.33 10.77 Singapore +0.03 -2.
-0.35 +1.76 -0.77 21.47 Taiwan Taiwan -0.35 +1.76 -0.77 Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan
Thailand -0.27 -8.52 0.13 8.60 Thailand -0.27 -8.52 0.13 8.60 Thailand -0.27 -8

(In Bengaluru, Anushka Trivedi reported; Rashmi Aich edited)/nRead More

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