Views Article – Sharenet Wealth

Asia, Forex

Most currencies slip, under pressure by stronger dollar

* China’s yuan leads losses among regional units * Korean won firms on Japan’s export approval * Indonesia to hold key rate on Thursday – poll (Adds text, updates prices) By Devika Syamnath Aug 20 (Reuters) – Most emerging Asian currencies declined on Tuesday, as the dollar firmed on hopes for fresh stimulus from global policymakers while the yuan, a bellwether for regional peers, weakened. Investors widely expect the U.S. Federal Reserve to cut rates again in September. The market’s focus will be Fed Chair Jerome Powell’s remarks at the annual symposium of global central bankers starting on Friday at Jackson Hole, Wyoming. The Chinese yuan declined as much as 0.3%, touching a one-week low, before paring some of the loss. China’s launch on Tuesday of a new lending reference rate, which saw a small initial cut, did not have a substantial impact on the yuan. But the change pointed to more easing ahead to seek to lower corporate borrowing costs. OCBC said in a note that for Asian currencies, recovery of risk sentiment was offset by a weaker yuan in the wake of regulatory changes at China’s central bank. “With these divergent pressures, expect the Asian currencies to potentially drift in different directions for now, although the overall bias beyond the immediate horizon may still be for a higher USD-Asia,” OCBC said. At 0558 GMT, the Indian rupee and Indonesian rupiah were both down 0.2%, making them among top decliners in the region. On Monday, India said it would exempt shadow lenders from debenture reserve requirements in an effort to increase the availability of money for lending. A Reuters poll on Tuesday showed that 17 of 19 economists expect Indonesia’s central bank to keep its key rate on hold on Thursday. KOREAN WON ON FIRMER FOOTING South Korea’s won bucked the regional trend, gaining 0.2% on signs of some easing in Seoul’s spat with Japan. Japan has approved shipments of a high-tech material to South Korea for the second time since imposing export curbs last month, two sources said. This came ahead of talks by government officials this week to resolve a dispute stemming from their wartime past. The won weakened nearly 5% since July. The following table shows rates for Asian currencies against the dollar at 0558 GMT. CURRENCIES VS U.S. DOLLAR Currency Latest bid Previous day Pct Move Japan yen 106.530 106.62 +0.08 Sing dlr 1.385 1.3864 +0.09 Taiwan dlr 31.400 31.352 -0.15 Korean won 1208.100 1211 +0.24 Baht 30.810 30.82 +0.03 Peso 52.320 52.39 +0.13 Rupiah 14260.000 14230 -0.21 Rupee 71.580 71.43 -0.21 Ringgit 4.180 4.175 -0.12 Yuan 7.067 7.0509 -0.22 Change so far in 2019 Currency Latest bid End 2018 Pct Move Japan yen 106.530 109.56 +2.84 Sing dlr 1.385 1.3627 -1.62 Taiwan dlr 31.400 30.733 -2.12 Korean won 1208.100 1115.70 -7.65 Baht 30.810 32.55 +5.65 Peso 52.320 52.47 +0.29 Rupiah 14260.000 14375 +0.81 Rupee 71.580 69.77 -2.53 Ringgit 4.180 4.1300 -1.20 Yuan 7.067 6.8730 -2.74 (Reporting by Devika Syamnath in Bengaluru; Editing by Richard Borsuk)

© 2019 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.
Array ( )