(Adds details, updates prices)
By Susan Mathew
June 14 Asian currencies were steady on
Wednesday as investors awaited results of the Federal Reserve
meeting and clues on the pace of further U.S. rate hikes as well
as signals on the country's inflation outlook.
"The FOMC is clouding the dollar sentiment so investors are
content sitting on the sidelines and not really doing much
today" said Stephen Innes, senior trader at OANDA.
The dollar index, which tracks the greenback against
a basket of six major rivals, edged down 0.02 percent at 0541
Conviction for a move beyond a widely expected rise now has
faded for many forecasters along with the outlook for inflation
for most, a Reuters poll showed.
Growing doubts about the U.S. administration's ability to
pass tax and healthcare reforms through Congress, along with
weak U.S. economic data have investors expecting a more dovish
outlook, which would mean a greater gain for the Asian
currencies, analysts say.
The U.S. May consumer price inflation data is also scheduled
to be out on Wednesday morning Washington time.
"The CPI data could actually provide significant bounce to
the dollar. The CPI data for the last two months have come out
negative and this is what really cooled the markets' expectation
for a further rate hike beyond June" Innes said.
Among regional currencies, the South Korean won
edged up 0.3 percent on Wednesday, recouping losses from its
Meanwhile, the Taiwan and Singapore dollars
edged lower, down 0.05 percent and 0.03 percent
The yuan, which weakened the past two days, edged
up 0.06 percent, after a slew of mixed economic data on
China's factory output grew 6.5 percent in May from a year
earlier, slightly better than expectations, but fixed-asset
investment grew 8.6 percent in the first five months of the
year, less than forecast.
After last week's readings from China purchasing managers'
index surveys, Wednesday's data "looks supportive and I think
this is going to look pretty decent in the broader picture for
the regional sentiment," Innes added. "I would expect the risk
on-sentiment to play positively.
SOUTH KOREAN WON
The won rose after three straight sessions of
losses as a bounce in tech stocks on Wall Street took some
pressure off following the rout in them.
The Korea SE Electric and Electronics index climbed
as much as 1.3 percent during Wednesday trade, but then the
gains were erased.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0541 GMT
Currency Latest bid Previous day Pct Move
Japan yen 110.060 110.05 -0.01
Sing dlr 1.381 1.3807 -0.03
Taiwan dlr 30.243 30.227 -0.05
Korean won 1124.600 1128.3 +0.33
Baht 33.918 33.92 +0.01
Peso 49.520 49.535 +0.03
Rupiah 13285.000 13290 +0.04
Rupee 64.323 64.33 +0.02
Ringgit 4.260 4.261 +0.02
Yuan 6.796 6.7989 +0.04
Change so far in 2017
Currency Latest bid End 2016 Pct Move
Japan yen 110.060 117.07 +6.37
Sing dlr 1.381 1.4490 +4.92
Taiwan dlr 30.243 32.279 +6.73
Korean won 1124.600 1207.70 +7.39
Baht 33.918 35.80 +5.55
Peso 49.520 49.72 +0.40
Rupiah 13285.000 13470 +1.39
Rupee 64.323 67.92 +5.59
Ringgit 4.260 4.4845 +5.27
Yuan 6.796 6.9467 +2.21
(Reporting by Susan Mathew in Bengaluru; Editing by Richard