Asian Currencies Lifted by Hopes of Ukraine Summit

Asian currencies showed positive signs on Monday, after risk appetite improved on US and Russian plans for a summit on the Ukraine crisis.

The South Korean won and the Thai baht climbed about 0.2%, while the Philippines peso and the Singaporean dollar rose by about 0.1% each.

The hopes of a good outcome spread further afield to Australia as the benchmark S&P/ASX200 index ended last week’s trading 0.2% higher at 7,233.6, following two weeks of lows. Meanwhile, Singaporean equities also rose slightly, helped in part by its financial year budget for 2022 announcement on Friday, where the fiscal deficit for FY2021 was pegged at 0.9%. 

Investors see the summit offering a glimmer of hope out of the crisis that has global markets rattled over the past few weeks. There are still some hurdles to overcome, as the US insists talks will only happen on condition that Ukraine is not invaded.

What does this mean for me? 

Asian markets have been creaking under the combined weight of heightened geopolitical risks and stubborn inflation.

Investors around the world have been jittery and have looked to safe-haven investments like gold and other metal-based commodities to act as a hedge against possible global economic disruption.

That the markets can recover simply on the prospects of a summit shows how edgy investors are with the situation in Eastern Europe. 

As a FOREX and stock trader, keeping a close eye on events will equip you with the right information with which to make better-informed portfolio decisions.