Reuters logo
EM ASIA FX- Asian currencies quiet ahead of Fed moves; Thai baht near 2-yr high
June 13, 2017 / 6:59 AM / 6 months ago

EM ASIA FX- Asian currencies quiet ahead of Fed moves; Thai baht near 2-yr high

    * Caution prevails ahead of key Fed meeting
    * Thai baht up 0.3 pct, the biggest gainer

 (Adds details, updates prices)
    By Susan Mathew
    June 13 (Reuters) - Most Asian emerging currencies moved
only marginally on Tuesday,  as traders awaited a Federal
Reserve meeting that is expected to raise the U.S. benchmark
interest rate and signal the pace of further hikes in 2017. 
    The biggest mover was the Thai baht, which
strengthened 0.3 percent to a near two-year high.
     Traders and analysts throughout the region were looking for
key information after the two-day Fed meeting that begins later
on Wednesday. It has raised rates once so far this year, in
March.
     "We are looking at three rate hikes this year, but
investors are not fully priced in for the third one," said Irene
Cheung, ANZ's senior FX strategist for Asia.
    The Fed is scheduled to release its decision at 1800 GMT
Wednesday. It is widely expected to raise its benchmark due to a
tightening labour market and may provide detail on its plans to
shrink the bond portfolio it amassed to nurse the U.S. economic
recovery.
    On Tuesday, the Singapore dollar edged 0.07 percent
higher. Data out earlier in the day showed that first-quarter
final unemployment in Singapore was 2.2 percent, versus the
preliminary 2.3 percent.
    The Malaysian ringgit was 0.15 percent higher after
a long weekend. Analysts said they believed inflows were keeping
it buoyant.
    The continuing sell-off in tech stocks in the U.S. kept the
Taiwan dollar and South Korean won under pressure, analysts
said.
    The Taiwan dollar, which has fallen the past five
sessions, was down 0.1 percent to its lowest in nearly three
weeks. 
    The South Korean won declined as much as 0.3
percent and hit its lowest in nearly four weeks.
    Some traders in South Korea were surprised by comments on
Monday by central bank governor Lee Ju-yeol they saw as
indicating that monetary policy could be tightened.
    But on Tuesday,  Lee clarified that his comment on rate
adjustment was not a sign that policy might be tightened soon,
and that rates would remain "accommodative". 

    THAI BAHT
    The baht rose to near two-year highs, buoyed by strong
current account surplus and portfolio inflows.
    Data on Monday also showed that international tourist
arrivals in Thailand rose 4.6 percent in May from a year
earlier, with revenue up 6.9 percent.
    Tourism accounts for 12 percent of Southeast Asia's
second-largest economy. 

 CURRENCIES VS U.S. DOLLAR
 Change on the day at   0601 GMT                      
 Currency                   Latest bid  Previous day  Pct Move
 Japan yen                  110.020     109.92        -0.09
 Sing dlr                   1.383       1.3839        +0.07
 Taiwan dlr                 30.202      30.176        -0.09
 Korean won                 1128.500    1127.3        -0.11
 Baht                       33.963      34.07         +0.32
 Peso                       49.565      49.5          -0.13
 Rupiah                     13293.000   13297         +0.03
 Rupee                      64.440      64.44         -0.01
 Ringgit                    4.257       4.2635        +0.15
 Yuan                       6.797       6.7988        +0.03
                                                      
 Change so far in 2017                                
 Currency                   Latest bid  End 2016      Pct Move
 Japan yen                  110.020     117.07        +6.41
 Sing dlr                   1.383       1.4490        +4.78
 Taiwan dlr                 30.202      32.279        +6.88
 Korean won                 1128.500    1207.70       +7.02
 Baht                       33.963      35.80         +5.41
 Peso                       49.565      49.72         +0.31
 Rupiah                     13293.000   13470         +1.33
 Rupee                      64.440      67.92         +5.40
 Ringgit                    4.257       4.4845        +5.34
 Yuan                       6.797       6.9467        +2.20
 
    
 (Reporting by Susan Mathew in Bengaluru; Editing by Richard
Borsuk)
  
 
 

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below