March 17, 2017 / 6:47 AM / 10 months ago

EM ASIA FX-Several Asian currencies set to post best weekly gains in months

    * Taiwan dollar set for biggest weekly gain in 5 years
    * Indian rupee set for biggest weekly gain in a year
    * Asian policies to remain neutral - analysts

 (Adds detail, updates prices)
    By Patturaja  Murugaboopathy 
    March 17 (Reuters) - The Taiwan dollar, South Korean won,
and Indian rupee are on target on Friday to set their biggest
weekly gains for many months, bolstered by a greenback weakened
by the U.S. Federal Reserve's decision earlier in the week.
    The Taiwan dollar was up around 1.4 percent for the
week, set to post its biggest weekly gain in more than five
years, while the South Korean won was up more than 2
percent for the week, set for its biggest weekly gain in eight
    The Indian rupee, which got a boost from the state
election results, is set to register a weekly gain of 1.5
percent, the biggest in a year.
    However on a daily basis, Asian currencies were slightly
weaker on Friday, weighed down by rises in U.S. Treasury yields
in the last two session.  
    The 10-year U.S. Treasury yield stood at 2.5332
percent on Friday, having edged up from Thursday's low of 2.4860
    Analysts said rising U.S. yields were likely to put pressure
on Asian countries to tighten their monetary policies,
signalling an end of a long cycle of monetary stimulus across
    On Thursday, China raised short-term interest rates for the
third time in as many months, while Indonesia kept its benchmark
interest rate unchanged for the fifth straight meeting.
Indonesia had cut its rates six times last year in an effort to
boost its economy.
    The window for more monetary easing in South Korea looked to
have closed after the Federal Reserve's rate rise, despite
struggles with household debt, economists said.
    "In terms of monetary policy, Asia is likely to remain
pretty neutral for now," said Nizam Idris, head of strategy,
fixed income and currencies at Macquarie Bank.
    Investor attention will move to political risks with the
start of the G20 meeting of finance ministers and central bank
presidents on Friday, analysts said. The protectionist stance of
U.S. President Donald Trump's administration could complicate
the talks, they added.
   "The focus is on the U.S. request for changes in global trade
agreements ... They may want to renegotiate bilateral or
multilateral trade agreements, which may read as potentially
negative for emerging markets," Nizam said.

   Change on the day                                  
    at   0533 GMT                             
  Currency             Latest bid   Previous  Pct Move
  Japan yen            113.420         113.3     -0.11
  Sing dlr             1.403          1.4007     -0.16
  Taiwan dlr           30.602         30.657     +0.18
  Korean won           1132.700         1132     -0.06
  Baht                 34.956         34.934     -0.06
  Peso                 50.170          50.12     -0.10
  Rupiah               13335.000       13345     +0.07
  Rupee                65.578          65.41     -0.26
  Ringgit              4.441           4.438     -0.07
  Yuan                 6.902          6.9003     -0.02
  Change so far                                       
  Currency             Latest bid  End 2016   Pct Move
  Japan yen            113.420        117.07     +3.22
  Sing dlr             1.403          1.4490     +3.29
  Taiwan dlr           30.602         32.279     +5.48
  Korean won           1132.700      1207.70     +6.62
  Baht                 34.956          35.80     +2.41
  Peso                 50.170          49.72     -0.90
  Rupiah               13335.000       13470     +1.01
  Rupee                65.578          67.92     +3.57
  Ringgit              4.441          4.4845     +0.98
  Yuan                 6.902          6.9467     +0.65
 (Reporting by Patturaja Murugaboopathy; Editing by Randy Fabi)
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