All of these factors were partially offset by the seasonal start of the structurally higher cost alluvial operations and local currency appreciation
of 2% during the reporting period.
Global Banking News-July 15, 2019--Thai central bank takes measures to curb currency appreciation
M2 EQUITYBITES-July 15, 2019--Thai central bank takes measures to curb currency appreciation
BANKING AND CREDIT NEWS-July 15, 2019--Thai central bank takes measures to curb currency appreciation
Ensuing actions by government by raising policy rate by150 bps to 12.25; currency appreciation
during the week to close at around 151 to 151.50 in interbank market and open market respectively from average 144 and 146 last week; announcement of presenting Budget on June 11 and Government decision to launch fund to support beleaguered PSX worth Rs.20 billion brought clarity to investors.
The public advocacy group noted that the dollarisation of the economy, and government policy on trade agreements that allow foreign businesses to repatriate 80% of profits to offshore accounts, is a disincentive to the currency appreciation
of the host bank note.
The currency appreciation
was also helped by foreign investors (FIIs) who remained net buyers in the capital markets, putting in 12.12 billion rupees on a net basis on Tuesday.
The bureau added that local and third currency appreciation
also lowered the value of external guarantees by P3.11 billion and P2.18 billion, respectively.
A currency appreciation
is a positive development for Indonesia as the rupiah faced a 5.7% depreciation against the dollar in 2018, compelling Bank Indonesia to tighten policy even though the output gap was negative or the economy was not over-heated, according to QNB
Inflation in Kazakhstan slowed from 7.7% to 6.3%, partly reflecting currency appreciation
in early 2018.
All else being equal, hike in interest rates leads to currency appreciation
as investors see higher returns on their investments in dollar-denominated assets.
"Headline inflation averaged 3.6 percent in FY2017/18, a 17-year low, reflecting low food prices on a return to normal monsoon rainfall, agriculture sector reforms, subdued domestic demand, and currency appreciation
. The near-term macroeconomic outlook is broadly favourable.