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EM ASIA FX-Most currencies rise as geopolitical concerns ease
April 12, 2017 / 6:19 AM / in 6 months

EM ASIA FX-Most currencies rise as geopolitical concerns ease

 (Adds details, updates prices)
    By Rushil Dutta
    April 12 (Reuters) - Most Asian currencies rose on Wednesday
as investor concerns eased about simmering geopolitical tensions
though caution towards risky assets prevailed in the market.
    Currencies were also helped by an overall softening in U.S.
treasury yields.
    The 30-year yield touched near three-month lows on Tuesday
as concerns about the upcoming French presidential elections and
possible U.S. military action against Syria and North Korea
prompted safe-harbour demand.
    The South Korean won crept into green after six
straight sessions of losses on optimism that the geopolitical
crisis won't snowball.
    "They need to have elections by May 10, and a sense of
political stability coming in means the won is a latent buying
opportunity if geopolitics doesn't blow out," said Vishnu
Varathan, a senior economist with Mizuho Bank.
    "The markets therefore won't go aggressively short on this,
because you do have some optimistic opportunists out there."
    The Thai baht and the Singapore dollar got a
lift from the yen's continued rally over the past three
sessions on the back of safe-haven buying. 
    The Chinese yuan, however, was about 0.1 percent
lower at 6.898 against the dollar.
    Data released earlier in the day showed China's producer
price inflation in March cooled for the first time in seven
months as iron ore and coal prices tumbled.
    Analysts, however, say they believe a bigger risk stems from
Chinese authorities struggling to manage banking sector risks
while they try to keep growth rate stable.
    China's banking regulator told banks to conduct
"self-inspections" to determine whether they are using loopholes
in rules to avoid reporting non-performing loans, Reuters had
reported earlier citing official documents.
    The Indian rupee was the biggest loser, down about
0.3 percent, wiping out minor gains made in the previous
session.
    The rupee is overbought and the focus has shifted to less
heavily bought assets, analysts said.
    "I don't see anything fundamental that has actually changed
within the domestic climate at all," said Stephen Innes, a
senior trader for FX broker OANDA.
    
    EYES ON MAS
    
    The Monetary Authority of Singapore (MAS) would keep its
exchange-rate based policy unchanged at its semiannual review
due on April 13, a Reuters survey predicted.
       
    The survey also showed the government's advance estimate of
first-quarter GDP, due at the same time, is expected to show
that GDP shrank 1.9 percent from the previous three months on
annualised basis.
    The Singapore dollar rose for a second straight session on
expectations that the MAS will assume a less dovish tone in its
meeting.
    "    'hawkishly neutral' stance may position the SGD
(Singapore dollar) for more strength against its trade-basket,"
Mizuho Bank said in a note.

 CURRENCIES VS U.S. DOLLAR
 Change on the day at   0612 GMT                        
 Currency                     Latest bid  Previous day  Pct Move
 Japan yen                    109.510     109.6         +0.08
 Sing dlr                     1.401       1.4033        +0.14
 Taiwan dlr                   30.570      30.650        +0.26
 Korean won                   1143.200    1145.8        +0.23
 Baht                         34.521      34.561        +0.12
 Peso                         49.545      49.635        +0.18
 Rupiah                       13285.000   13280         -0.04
 Rupee                        64.713      64.49         -0.34
 Ringgit                      4.428       4.431         +0.07
 Yuan                         6.894       6.8903        -0.06
                                                        
 Change so far                                          
 Currency                     Latest bid  End 2016      Pct Move
 Japan yen                    109.510     117.07        +6.90
 Sing dlr                     1.401       1.4490        +3.40
 Taiwan dlr                   30.570      32.279        +5.59
 Korean won                   1143.200    1207.70       +5.64
 Baht                         34.521      35.80         +3.70
 Peso                         49.545      49.72         +0.35
 Rupiah                       13285.000   13470         +1.39
 Rupee                        64.713      67.92         +4.96
 Ringgit                      4.428       4.4845        +1.28
 Yuan                         6.894       6.9467        +0.76
 
 (Reporting by Rushil Dutta in Bengaluru; Editing by Subhranshu
Sahu)
  
 
 

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