* Singapore dollar strengthens 0.1%
* S. Korea stocks set for best day in a month
By Indranil Sarkar
Nov 2 (Reuters) - Most Asian currencies held steady on Tuesday as investors
waited cautiously for key central bank meetings to determine the rates outlook
for next year, while Singapore"s dollar firmed on reports policymakers would act
on growing inflation risks.
The Reserve Bank of Australia left its cash rate at a record low of 0.1%,
but dropped both a commitment to keeping bond yields low and its projection of
no hike in interest rates until 2024 as inflation crept up in the country.
Investors have turned their focus towards policy meetings by the U.S.
Federal Reserve and the Bank of England due later this week that could set the
tone for risk appetite heading into next year.
Thailand"s baht, the Philippine peso and the Malaysian
ringgit strengthened between 0.1% and 0.3% as the greenback eased after
notching its biggest daily rise in more than four months on Monday.
The Singapore dollar edged up 0.1% after Ravi Menon, managing
director of the Monetary Authority of Singapore, said in a TV interview that
they were watching out for signs of accelerating inflation and were ready to act
against it.
The island nation also posted a drop in its new daily cases, but could see
as many 2,000 COVID-19 deaths annually over time, mainly among the elderly, a
minister had said on Monday.
South Korean stocks rose for a second straight session and were set
for their best day in nearly a month, as tech heavyweights took clues from a
record bounce on Wall Street.
Investors welcomed the government"s plan to seek inclusion of its sovereign
bonds into MSCI"s developed markets index. The South Korean won
firmed 0.08%.
Thailand"s baht was up 0.2% as Bangkok welcomed first tourists for
quarantine-free holiday, but investors are cautiously waiting to check if this
move would spur a spike in fresh infections.
"Foreign tourism is unlikely to see a near-term surge as many countries have
quarantine restrictions for returning tourists," ANZ Research analysts said in a
note.
Upside momentum has eased for the baht as it sees a host of other risks,
including unfavourable trade balance on rising crude prices considering Thailand
is a net oil importer, they added.
Coming off a holiday, Philippine stocks jumped 1.5%.
HIGHLIGHTS
** Indonesian 10-year benchmark yields are up 1.7 basis points at 6.2%
** Malaysia"s 10-year benchmark yield is up 2.1 basis points at 3.6%
Asia stock
indexes and currencies at 0506 GMT
COUNTRY FX FX FX INDEX STOCKS STOCKS
RIC DAILY YTD % YTD %
% DAILY
%
Japan
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