Asian Coins Fall Under Won Leadership With Virus Concerns
In the US, coronavirus cases rose to a record high and IMF lowered global economic growth forecasts, triggering escape from risky assets, currencies depreciated.
The index created by the Regional Exchanges lost value on the 2nd day. The IMF changed its global economic contraction forecast for 2020 from 3 percent to 4.9 percent. The toughest global economic contraction forecast was for India.
Frances Cheung, a Strategist at Westpac and in Singapore, said that optimism in the markets has been priced a lot in the past weeks and that currencies will be consolidated rather than strengthened in the short term.
The Dollar Spot Index gained 0.2 percent, while the MSCI Asia Pacific Index fell 1.1 percent.
Won has had its hardest fall for a week with the revision of the IMF.
Thai baht has lost value after 2 days of rising. While the Malaysian ringgit also lost value, the Philippine peso followed a horizontal course after the Central Bank’s 50-point interest rate cut.