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 appreciationM2 EQUITYBITES-July 15, 2019--Thai central bank takes measures to curb
currency appreciationBANKING AND CREDIT NEWS-July 15, 2019--Thai central bank takes measures to curb
currency appreciationEnsuing 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.
