Dollar peso exchange rate

This article first appeared in The Edge Malaysia Weekly, on June 20, 2022 - June 26, 2022. - A + A IF Bank Negara Malaysia’s eight-member monetary policy committee (MPC) raises the overnight policy rate (OPR) by 25 basis points (bps) at its next scheduled meeting on July 6, it will mark its first back-to-back increase since mid-2010, when interest rates were normalised following the recovery from the 2008 global financial crisis. It will not be the first central bank to do so. Compared with just a month ago, more economists now (at the time of writing) reckon that a 25bps hike will happen in July, but many still think a pause is possible in July ahead of the Hari Raya Aidiladha celebrations. In any case, at least one more rate increase (if not two) is expected to take place by the conclusion of the Sept 8 meeting to bring the OPR to at least 2.25% (if not 2.5%), consensus data show. “Our house has also shifted expectations for Bank Negara to frontload … [Read more...] about The State Of The Nation: What the Fed’s 75bps hike and near 4% terminal rate mean for the OPR

Electricity meter on a building in Seoul on Monday. The government announced that it is raising utility rates, including the electricity rate, due to rising international energy prices and won falling against the dollar. [YONHAP] Electricity rates will increase by 5 won per kilowatt-hour from next month, the Ministry of Trade, Industry and Energy announced Monday. This is the sharpest increase since a new billing system went into effect in 2021. Gas rates will also be increasing, by 1.11 won per megajoule. The government has been forced to increase rates as oil prices increase globally and as the won falls against the dollar. Electricity is currently billed at 88.3 won ($0.07) per kilowatt hour for the first 200 kilowatt-hours per month, 182.9 won per kilowatt-hour for 201 to 400 kilowatt-hours and 275.6 won per kilowatt-hour above 400 kilowatt-hours. Gas is currently 15.88 won per megajoule. The changes are expected to hit households already struggling with high … [Read more...] about Electricity rates to increase by 5 won per kilowatt-hour

- A + A KUALA LUMPUR (June 27): Costlier crude oil along with a stronger US dollar will erode Spritzer's Bhd profit margin, the bottled water producer admitted. "Costlier oil will translate into costlier PET resin, which is the main raw material used in making the [plastic] bottles. "PET resin is normally quoted in US dollar so a stronger US dollar would mean we will have to pay more for our PET resin," a company representative said in a brief email reply to theedgemarkets.com recently, when asked about the impact of surging oil prices on its manufacturing costs. According to the US-based PET Resin Association, PET — which is short for polyethylene terephthalate, the chemical name for polyester — is a clear, strong, and lightweight plastic made from crude oil and ethane extracted from natural gas that is widely used for packaging food and beverages, especially convenience-sized soft drinks, juices and water. Following Russia's incursion into Ukraine, oil prices … [Read more...] about Spritzer admits costlier crude oil, stronger US dollar will erode its profit margin

- A + A WASHINGTON (June 27): New orders for US-made capital goods and shipments increased solidly in May, pointing to sustained strength in business spending on equipment in the second quarter, but rising interest rates and tighter financial conditions could slow momentum. The nearly broad rise in orders reported by the Commerce Department on Monday occurred despite deteriorating business and consumer sentiment, as well as heightened fears of a recession. The gains partly reflected higher prices. The Federal Reserve is aggressively tightening monetary policy to quell inflation. "There's some inflation behind the increase in orders, but, nevertheless, there are a lot of dollars flowing through the economy right now," said Christopher Rupkey, chief economist at FWDBONDS in New York. "Businesses would not order new equipment if they thought consumers and other companies were looking to pull back their purchases." Orders for non-defense capital goods excluding … [Read more...] about US manufacturing shows resilience despite rising interest rates

- A + A BANGKOK (June 27): A tightening of Thai monetary policy will be conducted so it does not disrupt the recovery of Southeast Asia's second-largest economy, central bank officials said on Monday, reinforcing market expectations of interest rate hikes later this year. Thailand's economy will continue growing this year and next, driven by domestic demand and tourism, and could beat forecasts despite a risk that inflation will be higher than expected, Bank of Thailand (BOT) officials told an analysts' meeting. The BOT will try to prevent the economy from overheating, which would cause demand-driven inflation, by gradually shifting from the current very accommodative policy, assistant governor Piti Disyatat told the meeting. The BOT's task was to help the economy take off smoothly, he said. "It's a challenge for monetary policy to release the accelerator pedal appropriately and timely so that the recovery has good momentum," Piti said, referring to the current … [Read more...] about Thai central bank says policy tightening will not disrupt economy recovery

- A + A (June 27): The People’s Bank of China pledged to maintain a supportive monetary policy to aid the economy’s recovery from Covid outbreaks and lockdowns and other stresses. “The monetary policy will continue to be accommodative to support economic recovery in aggregate sense,” Governor Yi Gang said in an interview with state broadcaster China Global Television Network , according to a transcript released by the central bank on Monday. The central bank’s “high priorities” are to maintain stable prices and maximize employment, Yi said. It will also continue to focus on structural policies such as those supporting small businesses and green projects, he said. China’s “real interest rate is pretty low” after taking inflation into account, Yi said. The inflation outlook is stable, he said, with consumer prices rising 2.1% in May and producer prices increasing 6.4%. The PBOC has taken a modest approach to easing this year, as weak borrowing demand in the face … [Read more...] about PBOC to keep policy supportive for China economy, Governor says

- A + A KUALA LUMPUR (June 27): The government is subsidising 13.81 sen for domestic users and 8.11 sen for non-domestic users for every kilowatt-hour (kWh) of electricity consumption in Peninsular Malaysia in the second half of 2022 (2H22). This is as the cost of fuel and other electricity generation costs in 1H22 rose to RM7 billion, equivalent to 11.81 sen/kWh, in imbalance cost pass-through (ICPT) surcharge, as revealed by the Energy Commission (EC). This compares with two sen/kWh rebate for domestic users, and 3.7 sen/kWh surcharge for industrial and commercial users that will remain in place through 2H22. These ICPT amounts were first revealed in February to reflect the generation and fuel costs in 2H21. The surcharge and rebate are applied on the base electricity tariff of 39.45 sen/kWh. Of the RM5.8 billion previously announced by the government to fund the electricity surcharge subsidy, the EC said RM2.3 billion goes to cover the domestic user portion. … [Read more...] about Govt to subsidise up to 13.81 sen/kWh for electricity in 2H22

- A + A MUMBAI/MANILA (June 27): Signs of distress flashing in bond markets suggest the world's poorest nations are set to see a wave of debt restructurings. But a growing cohort of investors say that is a buying opportunity. Panic selling in the aftermath of Sri Lanka's economic collapse has sent the average yield in junk-rated emerging economies to almost 900 basis points above US Treasuries, the highest risk premium in 13 years except for the Covid-19-related rout in 2020, according to JPMorgan Chase & Co data. Yet, initial fears about a widespread default Armageddon across emerging markets is easing, and money managers are looking beyond the handful of countries that may reschedule their debt. This shift in perception means at least some smaller developing nations, called frontier markets, have been unduly punished in the recent sell-off and now offer highly attractive yields. Even in the event of debt restructuring, their bonds will offer greater recovery … [Read more...] about Frontier-debt buyers look past default risk in hunger for yield

The claims process for General Electric Co.'s ( GE ) GE Fair Fund was opened this week to distribute $200 million to investors. The fund, which was established by the Securities and Exchange Commission (SEC), will distribute civil penalties paid by GE to investors affected by the company’s failure to disclose material information about its power and insurance businesses. RCB Fund Services LLC, the fund's administrator, made the announcement on June 21. Key Takeaways GE has opened its $200 million GE Fair Fund to compensate investors affected by the company’s failure to disclose material information. GE failed several years ago to disclose relevant details about profit growth in its power unit and unfavorable trends in its insurance business. Investors who purchased GE common stock between Oct. 16, 2015, and Jan. 16, 2018, are eligible for compensation if they meet specific requirements. GE’s share price has significantly underperformed the S&P 500 in recent … [Read more...] about General Electric (GE) Compensation Fund to Distribute $200 Million to Investors

- A + A NEW YORK (June 28): U.S. stocks ended a volatile trading session slightly lower on Monday after posting sharp gains the week before, while oil prices and Treasury yields rose. Oil climbed following last week's rout, as the Group of Seven nations promised to tighten the squeeze on Russia's finances with new sanctions that include a plan to cap the price of Russian oil. Investors have been hoping oil's slide from three-month peaks hit earlier in June could ease overall inflation concerns and allow the U.S. Federal Reserve to tighten policy less aggressively than initially feared. Still, data on Monday showed new orders for U.S.-made capital goods and shipments increased solidly in May, pointing to sustained strength in business spending on equipment in the second quarter. Stocks moved between gains and losses during the session on Wall Street, with big growth shares leading the way down. "It's not shocking given we're in a bear market that last week was a … [Read more...] about U.S. stocks fall after recent big gains; oil, yields rise