empty
24.02.2022 06:11 PM
Asian markets benefit from conflicts in Europe

According to expert data on Thursday, investors have strengthened their bullish position on most Asian currencies over the past two weeks, while long bets on the Thai baht have more than tripled in the hope of economic recovery amid risks associated with geopolitics and the coronavirus pandemic.

Asian markets benefit from conflicts in Europe, Thai baht and yuan lead the bulls

This image is no longer relevant

A survey of 12 major market participants showed that long positions on the Thai baht were the highest since the end of 2019, while bearish positions on the Indonesian rupiah turned around, and similar positions on the Korean won, the Philippine peso and the Indian rupee significantly decreased.

Thailand's finance minister said the entire policy was aimed at achieving 4 percent economic growth this year and ensuring full recovery in 2024. Earlier this month, its central bank also left its benchmark interest rate at a record low for the 14th consecutive meeting.

"Thailand's economic recovery remains uneven, but will continue despite the volatility of the pandemic," said Chua Han Teng, an economist at DBS Group.

However, despite the remoteness, most of the regional units have faced obstacles in recent days due to the growing tension in relations between Russia and Ukraine. On Thursday, they suffered an even greater defeat after Russian troops launched a full-scale attack, firing rockets at several Ukrainian cities and landing troops on its southern coast.

Bullish bets on the Chinese yuan persisted, with the currency hovering at a nearly four-year high on Thursday as demand for less risky assets increased.

The yuan also proved to be more stable compared to its counterparts in emerging markets due to the growing influx of foreign capital into Chinese assets and the more active conversion of corporate revenue from exports into yuan.

Analysts canceled their short positions on the Indonesian rupiah as Southeast Asia's largest economy recorded a $ 2 billion budget surplus in January and tax revenues rose sharply thanks to a faster economic recovery and high commodity prices.

The Asian currency positioning survey focuses on what analysts and fund managers believe are the current market positions of nine Asian emerging market currencies: Chinese yuan, South Korean won, Singapore dollar, Indonesian rupiah, Taiwan dollar, Indian rupee, Philippine peso, Malaysian peso, Ringgit, and Thai baht.

In the short term, Asian markets may show a correction, but the revival of imports from Asian countries associated with the conduct of hostilities in Europe is likely to strengthen bullish positions in the region.

Egor Danilov,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

US Market News Digest for April 14

The US stock market rallied after President Donald Trump announced the removal of tariffs on computers and smartphones. The decision delivered a particularly strong boost to companies such as Apple

Ekaterina Kiseleva 12:09 2025-04-14 UTC+2

European chipmakers rejoice as US lifts stocks

A rally in tech stocks helped lift European shares on Monday after US President Donald Trump granted exemptions to Chinese tariffs on smartphones and computers, giving markets a break after

Thomas Frank 11:14 2025-04-14 UTC+2

US Market News Digest for April 11

After Wednesday's explosive rally triggered by President Donald Trump's announcement of a 90-day tariff pause, US markets on Thursday decided the party was premature. Major indices tumbled: the Dow dropped

Natalia Andreeva 15:28 2025-04-11 UTC+2

Rollercoaster: S&P 500 down 3%, gold hits all-time highs

US stocks fall after Wednesday's events, S&P 500 down 3% European and Asian stocks close higher after Trump suspends most tariffs Bond market rally stabilizes, gold prices hit all-time highs

Thomas Frank 09:44 2025-04-11 UTC+2

Bitcoin struggles to find support as tariff turmoil roils global markets

The flagship cryptocurrency remains in a fragmented state, unable to establish a firm footing. Bitcoin is experiencing significant volatility and posted losses this week. Nevertheless, experts remain optimistic, anticipating

Larisa Kolesnikova 14:38 2025-04-10 UTC+2

US Market News Digest for April 10

The S&P 500 index notched one of its biggest one-day gains in recent months. The upward move slowed near 5,516, but a break above key resistance at 5,669.50 could open

Irina Maksimova 12:58 2025-04-10 UTC+2

Why are stocks rising as yuan sags and U.S. futures slip?

The financial world breathed a sigh of relief on Thursday as stock markets surged higher and the chaotic bond selloff finally slowed down. The reason was a surprise initiative

Thomas Frank 10:17 2025-04-10 UTC+2

US Market News Digest for April 9

US stock indices closed lower after the White House announced a new wave of tariffs on Chinese goods. The rate could rise to 104%, a direct hit on imports

Irina Maksimova 12:33 2025-04-09 UTC+2

Domino effect: US tariffs slam markets, investors dump dollar, bonds

Trump's China tariffs spark recession fears US Treasuries and dollar hit by sell-off, yields soar European stocks fall as US retaliatory tariffs take effect World markets face crisis-era volatility, stocks

Thomas Frank 11:20 2025-04-09 UTC+2

"Golden" Forecasts: Gold at $3,500, $3,700 – Higher and Higher?

Gold forecasts are becoming increasingly dazzling in every sense, as analysts appear to be competing with one another over how high the precious metal could go. Rising geopolitical instability

Larisa Kolesnikova 11:07 2025-04-09 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.