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EM ASIA FX-Asian currencies fall against firm dollar; won down for third session
May 30, 2017 / 6:35 AM / 6 months ago

EM ASIA FX-Asian currencies fall against firm dollar; won down for third session

 (Add details, updates prices)
    By Ambar Warrick
    May 30 (Reuters) - Asian currencies slipped on Tuesday
against a firmer dollar as political uncertainty in Britain and
the eurozone bogged down their respective currencies - shifting
focus to the greenback.
    Sterling slipped after a poll showed British Prime
Minister Theresa May's lead over the opposition Labour Party in
upcoming elections dropped to 6 percentage points. 
    The euro fell on concerns over a bailout for
Greece, as eurozone finance ministers failed to agree with the
International Monetary Fund last week on Greek debt relief.

    "A few polls in the UK highlighted what the market thought
would be a soft Brexit turned out to be a hard Brexit," said
Stephen Innes, a senior trader for currency broker OANDA. "This
risk environment is weighing negatively on global sentiment."
   The dollar index moved up 0.33 percent as at 0632 GMT
against a basket of currencies.
    "We'd expect the EUR to remain somewhat tender, imparting
also some upside dollar resilience against the other majors and
Asian currencies," OCBC Bank said in a note.
    The South Korean won fell about 0.27 percent
against the dollar, down for a third consecutive session. 
    South Korea is scheduled to issue industrial output data for
May on Wednesday, with a Reuters poll of 13 analysts expecting
exports to have risen in May for the seventh straight month, but
at a slower pace because of fewer working days.
    South Korea said on Tuesday it had conducted a joint drill
with a U.S. bomber following a missile test by North Korea.
North Korea's leader was reported to have ordered the
development of more powerful strategic weapons to defend the
country against the United States.
      China's yuan did not trade because of a 
national holiday. The offshore yuan however, lost about
0.04 percent against the dollar on Monday after spiking up as
much as 0.23 percent. 
    While market participants were waiting to see how a new
central bank fixing methodology will work when China opens on
Wednesday after a long weekend, offshore yuan markets were
quoting the currency slightly weaker at 6.8305 per dollar
    China is changing how it calculates the yuan's guidance rate
for the second time this year, with the China Foreign Exchange
Trade System trading platform saying that a "counter-cyclical
factor" would be introduced into the way it calculates the
yuan's reference rate each day.    
    The Taiwan dollar did not trade because of a
domestic holiday.
    
    SINGAPORE DOLLAR
    The Singapore dollar was down about 0.12 percent
against the dollar, extending its losses from Monday to fall to
its lowest in nearly a week. 
     "There's a bigger relation with the RMB complex," said
OANDA's Innes. 
   "Since the PBOC has been guiding the stronger fixes since
last week, coupled with a ridiculous carry that has been imposed
 on the short CNH positions, the Singapore dollar is
piggybacking movements on the underlying RMB."
       
 CURRENCIES VS U.S. DOLLAR
    
  Change on the day at                                       
        0601 GMT                                    
  Currency               Latest bid   Previous day   Pct Move
  Japan yen             110.940             111.24      +0.27
  Sing dlr              1.388               1.3861      -0.12
  Korean won            1124.700            1121.7      -0.27
  Baht                  34.150              34.123      -0.08
  Peso                  49.865               49.82      -0.09
  Rupiah                13332.000            13320      -0.09
  Rupee                 64.650               64.49      -0.26
  Ringgit               4.282               4.2705      -0.26
                                                             
  Change so far                                              
  Currency              Latest bid   End 2016        Pct Move
  Japan yen             110.940             117.07      +5.53
  Sing dlr              1.388               1.4490      +4.42
  Korean won            1124.700           1207.70      +7.38
  Baht                  34.150               35.80      +4.83
  Peso                  49.865               49.72      -0.29
  Rupiah                13332.000            13470      +1.04
  Rupee                 64.650               67.92      +5.06
  Ringgit               4.282               4.4845      +4.74
 
 

 (Reporting by Ambar Warrick in Bengaluru)
  
 
 

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