Other currencies also at risk due to Chinese unrest: Standard Chartered
Global currencies will also be at risk of weakness along with the offshore Chinese yuan amid turmoil in China over its anti-Covid policies due to how supply chains will be affected, according to Standard Chartered Bank.
“The main question about how the world will react is how does the Chinese supply chain respond,” Stephen Englender, managing director of Standard Chartered Bank, said on CNBC. “Squawk Box Asia”.
“If there is more disruption, I think it’s very risky,” he said. “Not only CNH, but other currencies will be at risk.”
Englander added that traders may be looking to reduce their exposure to further risk.
– Jihe Lee
Oil prices drop as China’s Covid-19 protests continue
Crude oil futures fell early in Asia as COVID cases, virus restrictions and unrest in China rose, raising concerns about demand from the world’s second largest oil consumer.
West Texas Intermediate futures It decreased by 0.35%, to $76.01 per barrel, while Brent Crude Futures It lost 0.26%, to $83.41 a barrel.
Oil prices fell sharply last week as increasing lockdowns in China stoked demand concerns, ANZ Research’s Brian Martin and Daniel Hynes wrote in a note on Monday.
“This continues to be a headwind for oil demand,” they said, adding that the impact of rising Covid cases was reflected in China’s mobility data as well.
– Abigail Ng
Offshore Chinese Yuan weakened in Asia morning as covid protests continue
The offshore Chinese yuan It weakened sharply against the US dollar amid negative sentiment over unrest in China due to Covid restrictions.
The currency fell about 0.8% against the US dollar to 7.2529 in Asian morning trade.
The dollar index It rose 0.32% to 106.29, with investors potentially seeing the dollar as a safe-haven asset as concern grows about China.
– Jihe Lee
“Incurable bacon nerd. Lifelong tv aficionado. Writer. Award-winning explorer. Evil web buff. Amateur pop culture ninja.”