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EM ASIA FX-Asian currencies slip as strong US jobs data strengthens dollar
June 16, 2017 / 6:41 AM / 3 months ago

EM ASIA FX-Asian currencies slip as strong US jobs data strengthens dollar

 (Adds details, updates prices)
    By Susan Mathew
    June 16 (Reuters) - Asian currencies were lower on Friday as
the U.S. dollar gained, boosted by strong jobs data which
bolstered the case for a third rate hike in 2017 by the Federal
Reserve.
    "The U.S dollar index is a lot firmer and if the majors are
depreciating against the dollar then that typically means the
Asian currencies are going to follow suit," said Tim Condon,
head of Asia research at ING Financial Markets.
    The dollar index, recovering from a fall on Thursday
after dismal inflation and retail data, was up 0.1 percent at
0534 GMT after weekly data showed that the number of
unemployment benefit claims in the United States fell more than
expected.
    Fed Chair Janet Yellen indicated on Wednesday that it 
remained confident inflation would rise to its target over the
medium term, bolstered by what she described as a robust labour
market that is continuing to strengthen.
    On Friday, the biggest loser among regional currencies was
the South Korean won falling 1.2 percent, followed by
the Philippine peso and the Taiwan dollar
each down 0.5 percent.
    The peso was on track to post its worst week since November
2016.
    The Malaysian ringgit was 0.3 percent lower.
    The Chinese yuan edged 0.1 percent lower after
the central bank set the midpoint rate sharply lower
on Friday than the previous day at 6.7995 per dollar, the
weakest level since June 2, reacting to greenback strength
overnight.  
    The Singapore dollar slipped 0.2 percent after
rising marginally on data showing a contraction in non-oil
exports was smaller than expected.
    For the coming week, the beginning of Brexit talks on Monday
will be a theme influencing investors.
    
    SOUTH KOREAN WON 
    The won's 1.2 percent drop was its steepest intraday decline
in more-than three months and putting it on track for its worst
week since early April.
    A dealer in Seoul said the USD/KRW pair extended its rise
during hour as offshore players and local banks "opted to build
up positions in anticipation of the USD's strength continuing
for some time, thanks to bullish Fed views and prolonged
uncertainty over U.S. politics". 
     Dollar purchases by the National Pension Service added
momentum, the dealer said.
        
    TAIWAN DOLLAR
    The Taiwan dollar was on track for a ninth straight day of
losses and its steepest weekly decline since early March.
    "It may be a combination of the weakness in yen and a late
reaction from Panama breaking off relations and dropping its
recognition of Taiwan, and recognising China," Condon said.
    On Monday, Panama said it had broken with Taiwan to forge
ties with Beijing.
    
    
 CURRENCIES VS U.S. DOLLAR
 Change on the day at 0534 GMT                       
 Currency                  Latest bid  Previous day  Pct Move
 Japan yen                 111.150     110.91        -0.22
 Sing dlr                  1.386       1.3834        -0.22
 Taiwan dlr                30.400      30.247        -0.50
 Korean won                1137.500    1124.1        -1.18
 Baht                      33.990      33.95         -0.12
 Peso                      49.895      49.63         -0.53
 Rupiah                    13300.000   13284         -0.12
 Rupee                     64.720      64.54         -0.29
 Ringgit                   4.277       4.265         -0.28
 Yuan                      6.815       6.8100        -0.07
                                                     
 Change so far in 2017                               
 Currency                  Latest bid  End 2016      Pct Move
 Japan yen                 111.150     117.07        +5.33
 Sing dlr                  1.386       1.4490        +4.52
 Taiwan dlr                30.400      32.279        +6.18
 Korean won                1137.500    1207.70       +6.17
 Baht                      33.990      35.80         +5.33
 Peso                      49.895      49.72         -0.35
 Rupiah                    13300.000   13470         +1.28
 Rupee                     64.720      67.92         +4.94
 Ringgit                   4.277       4.4845        +4.85
 Yuan                      6.815       6.9467        +1.94
    

 (Reporting by Susan Mathew in Bengaluru; Additional reporting
by Yena Park from Seoul; Editing by Jacqueline Wong and Richard
Borsuk)
  
 
 

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