Most Asian currencies weaker against dollar on news of N Korea-U.S. meeting
* Eyes on U.S. labour data due later on Friday
* S.Korean won, Indian rupee only gainers
* China's yuan weakens
(Adds text, updates prices)
By Aaron Saldanha
March 9 (Reuters) - The dollar gained against most Asian
currencies on Friday as a potential breakthrough in nuclear
tensions between the United States and North Korea supported
sentiment toward the greenback, while also supporting the South
Reports that U.S. President Donald Trump has agreed to meet
North Korean leader Kim Jong Un by May caused both the dollar
and the South Korean currency to strengthen,
shielding the Asian currency from weakness felt in the rest of
Outside of geopolitical factors, U.S. non-farm payroll data
for February is likely to be a key driver for Federal Reserve
rate hike expectations, which could give the dollar some
"Barring any negative surprises in tonight’s U.S. monthly
jobs data, the Fed is on track to hike rates at its next FOMC
meeting on March 21," DBS Group strategists Eugene Leow and
Philip Wee said in a note.
"The Fed is also expected to upgrade its assessment for the
The dollar index against a basket of six major
currencies was up to 0.15 percent higher at 90.31, the highest
in more than a week.
The South Korean won firmed 0.22 percent against the dollar
while the country's benchmark equities index gained up
to 1.8 percent.
A fortnightly poll of analysts by Reuters showed a doubling
of bullish bets on the won.
The Indian rupee was 0.07 percent firmer and
Thailand's baht was flat against the dollar.
Thailand's central bank governor said on Thursday that its
monetary policy needs to remain accommodative to aid the
country's economic recovery as inflationary pressure remains
The baht has been among the top gaining regional currencies
in the year to date, leading to fears of lower Thai export
Indonesia's rupiah was 0.04 percent weaker while
the Singapore dollar softened 0.08 percent.
Similarly, Malaysia's ringgit lost 0.13 percent ahead
of the payroll data while the Taiwan dollar weakened by
The yuan was 0.09 percent weaker against the
The People's Bank of China set a weaker daily fixing
for the first time since Monday, at 6.3451 per
Trump on Thursday pressed ahead with the imposition of 25
percent tariffs on steel imports and 10 percent for aluminium,
though he announced exemptions for Canada and Mexico, and said
exceptions could also be made for other allies.
China, which produces half the world's steel, said it was
"resolutely opposed" to his decision.
The Philippine peso was among the worst
performers in the region as inflation and export data released
this week took their toll on the currency.
Philippine exports grew at their slowest pace in more than
a year in January keeping the country's trade deficit at a high
level that could further weigh on the peso, which is languishing
near a 12-year low.
DBS Bank's Wee said Asian currencies with both budget and
current account deficits, including the Philippine peso, will be
more vulnerable to higher U.S. 10-year bond yields.
The following table shows rates for Asian currencies against
the dollar at 0521 GMT.
CURRENCIES VS U.S. DOLLAR
Currency Latest bid Previous day Pct Move
Japan yen 106.620 106.2 -0.39
Sing dlr 1.318 1.3170 -0.08
Taiwan dlr 29.290 29.261 -0.10
Korean won 1067.900 1070.2 +0.22
Baht 31.360 31.36 0.00
Peso 52.100 52.03 -0.13
Rupiah 13785.000 13780 -0.04
Rupee 65.098 65.14 +0.07
Ringgit 3.912 3.907 -0.13
Yuan 6.344 6.3378 -0.09
Change so far in 2018
Currency Latest bid End 2017 Pct Move
Japan yen 106.620 112.67 +5.67
Sing dlr 1.318 1.3373 +1.46
Taiwan dlr 29.290 29.848 +1.91
Korean won 1067.900 1070.50 +0.24
Baht 31.360 32.58 +3.89
Peso 52.100 49.93 -4.17
Rupiah 13785.000 13565 -1.60
Rupee 65.098 63.87 -1.89
Ringgit 3.912 4.0440 +3.37
Yuan 6.344 6.5069 +2.58
(Reporting by Aaron Saldanha in Bengaluru; Editing by Sam
First Published: 2018-03-09 03:54:28
Updated 2018-03-09 08:30:35
© 2018 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.