Most emerging Asian currencies extended their declines on Monday with investors expecting the U.S. Federal Reserve to indicate this week that it would start to raise interest rates from the middle of the year. The Indonesian rupiah IDR= hit a fresh 17-year low, while sluggish exports and imports in February offset a higher-thanexpected trade surplus. South Korea's won KRW=KFTC touched a 20-month low on importers' dollar demand and as offshore funds sold the currency. The Malaysian ringgit MYR=MY stayed around a six-trough on lower oil prices. he Fed meets on Tuesday and Wednesday and is widely expected to drop the word "patient" from its formal statement on the timing of its first rate increase since 2006. The removal of the word from its forward guidance is seen as an indication of the U.S. central bank's intention to raise borrowing costs soon. By contrast, many Asian central banks eased monetary policies, undermining the appeal of yields and currencies in the region. Last week, most regional units fell with South Korea and Thailand's monetary authorities unexpectedly cutting interest rates.(Fed Chair Janet) Yellen is unlikely to disappoint markets, which have much priced in the dropping of 'patient'. "It is more important what message Yellen would give after that. If she signals the Fed would weigh the timing of rate hikes further, we may see some short-covering in Asian currencies. WON The won lost as much as 0.7 percent to 1,136.6 per dollar, its weakest since July 2013. The South Korean currency pared some of its losses as exporters took the slide as an opportunity to buy on the dips for settlements. Still, investors were looking to sell the currency around 1,130 for a test of the psychological support at 1,140.The won does not have a major chart support line until 1,147.3, the 23.6 percent Fibonacci retracement of 2009- 2014 appreciation, analysts said. The rupiah slid 0.4 percent to 13,244 per dollar, its weakest since August 1998, on dollar demand from local companies. The currency pared some of losses as the central bank was spotted intervening to support the worst-performing Asian currency so far this year, traders said. Indonesia posted a trade surplus of $738.3 million in February, higher than market expectations of $520 million, data showed earlier. The surplus came as imports slid 16.24 percent, far exceeding an expected 6.80 percent drop, and exports lost 16.02 percent.The official Jakarta Interbank Spot Dollar Rate JISDOR= , which the central bank introduced in 2013 to manage exchange rate fluctuations, was fixed at 13,237 rupiah per dollar, the weakest since the launch. (Source: Investing)
Gold moves slightly higher, amid euro rally
Gold future prices remained relatively stable on Monday, amid a slight rally by the euro after the currency hit record-lows last
week at week’s end. On the Comex division of the New York Mercantile Exchange, gold prices for April delivery rose 1.10
or 0.10% to $1,153.50 per troy ounce. Gold prices peaked at $1,163.30, before falling to $1,149.30 in U.S. morning
trading.Activity was subdued on Monday, as metal traders await the Federal Open Market Committee’s (FOMC) meeting on
Wednesday when the Fed could provide details on when it plans to raise interest rates. The U.S. central bank can remove a
reference to remaining patient, which typically indicates that an interest rate hike could occur within the next two FOMC
meetings.Gold is viewed as a safe haven for investors in periods of declining interest rates.Over the last two weeks, the U.S.
dollar has skyrocketed against the euro as the start of the European Central Bank’s EUR 60 billion a month bond buying
program has coincided with expectations that the Fed will raise rates. While the euro is down more than 30% against the
dollar during the last 52 weeks, nearly half of the decline occurred during the previous five days of trading.On Monday,
however, the euro halted its rapid decline, as it moved above 1.06 in U.S. afternoon trading. At that point, the euro gained
1.11% or 0.0114 to 1.061.The U.S. Dollar Index, which measures the strength of the greenback against six major other
currencies, fell slightly 0.87 or 0.86% to 99.85. Last week, the index reached a 12-year high after cracking the historic 100
barrier.Dollar-denominated commodities such as gold become more expensive for purchasers in foreign markets as the dollar
strengthens.Elsewhere, weaker than expected economic data in China softened gold’s rally. Fiscal income in China between
January and February rose only 3.2%, below analysts’ expectations. Comparatively, the gain at the same point last year
exceeded 8.5%.China is the second-largest purchaser of the precious metal in the world.Silver, meanwhile, increased 0.149 or
0.96% to 15.645 a troy ounce. Copper gained 0.24% or 0.006 to 2.67 a pound.Platinum futures plummeted 7.30 or 0.96% to
1,107.90, while palladium fell 6.60 or 0.84% to 782.10.
Buy PNB Around 166.00 TGT 173.00 SL 162.00
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