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EM ASIA FX-Ringgit leads Asia FX slides on low commodity prices; yuan up
October 20, 2015 / 6:53 AM / 2 years ago

EM ASIA FX-Ringgit leads Asia FX slides on low commodity prices; yuan up

* Yuan gains slightly after U.S. currency report
    * Ringgit down ahead of budget announcement on Friday
    * Rupiah near 2-week low on corporate dollar demand
    * Won falls, S.Korea exporters limit downside

 (Adds text, updates prices)
    By Jongwoo Cheon
    SINGAPORE, Oct 20 (Reuters) - The Malaysian ringgit on
Tuesday led losses among emerging Asian currencies as a slowing
Chinese economy hurt commodity prices and the dollar broadly
stayed firm amid some expectations of further monetary stimulus
from the European Central Bank.
    China's yuan edged up after the United States
took a softer line in its calls for Beijing to allow the
currency to appreciate. 
    The ringgit slid in subdued trading ahead of
Malaysia's 2016 budget due later this week. The Indonesian
rupiah hit a near two-week low on corporate dollar
demand for month-end payments. 
    The South Korean won fell as the dollar 
held firm against a basket of six major currencies with the euro
around a 10-day low ahead of this week's ECB meeting. The
European Central Bank will extend its stimulus programme beyond
September 2016, a Reuters poll of economists showed.
 
    Asian stocks mostly slumped, putting pressure on regional
currencies.
    "The recent rebounds in emerging currencies and risky assets
are seen mainly due to position adjustments. It does not mean
that markets found bullish factors to buy them," said Jeong
My-young, Samsung Futures' research head in Seoul.
    "There are some hopes that additional liquidity from the ECB
may partially offset higher U.S. interest rates, but sluggish
economies in China and developing countries will hurt appetite
on risky assets."
    Most emerging Asian currencies have risen so far this month
as investors unwound bearish bets with expectations of the
Federal Reserve's interest rate hike within this year waning
after a series of weak U.S. data.
        
    RUPIAH
    The rupiah lost 0.8 percent to 13,640 per dollar, its
weakest since Oct. 8.
    Most of Indonesia's government bond prices also
slid.
    The official Jakarta Interbank Spot Dollar Rate,
which the central bank introduced in 2013 to manage exchange
rate fluctuations, was fixed at 13,634, weaker than 13,563 on
Monday.
        
    RINGGIT
    The ringgit fell as traders added dollar holdings in thin
trading amid the greenback's broad strength.
    The Malaysian unit pared some of the earlier losses,
tracking a slight retreat in the U.S. currency.
    Traders, however, hesitated to add bullish bets on the
ringgit ahead of a 2016 budget plan on Friday.
    Malaysia's Prime Minister Najib Razak will present a budget
that will look to shore up economic growth and appease voters
unhappy with his leadership and rising living expenses.
 
    "Obviously the struggling economy needs to be addressed but
at what cost to the government's plan to trim deficit?" said
Stephen Innes, senior trader for FX broker OANDA in Singapore.
    
    WON
    The won slumped earlier as much as 1.2 percent to 1,135.0
per dollar as traders rushed to cover short positions in the
greenback.
    The South Korean currency cut some of earlier losses as
exporters bought it for settlements on dips around 1,130.
    
    CURRENCIES VS U.S. DOLLAR
    Change on the day at 0610 GMT
  Currency    Latest bid   Previous day    Pct Move
  Japan yen       119.42         119.49       +0.06
  Sing dlr        1.3888         1.3880       -0.06
  Taiwan dlr      32.385         32.418       +0.10
  Korean won     1129.56        1121.00       -0.76
  Baht             35.43          35.35       -0.21
  Peso             46.18          46.07       -0.23
  Rupiah        13640.00       13530.00       -0.81
  Rupee            64.93          64.80       -0.20
  Ringgit         4.2500         4.2055       -1.05
  Yuan            6.3520         6.3601       +0.13
 
  Change so far in 2015
  Currency    Latest bid  End prev year    Pct Move
  Japan yen       119.42         119.66       +0.20
  Sing dlr        1.3888         1.3260       -4.52
  Taiwan dlr      32.385         31.718       -2.06
  Korean won     1129.56        1099.30       -2.68
  Baht             35.43          32.90       -7.13
  Peso             46.18          44.72       -3.15
  Rupiah        13640.00       12380.00       -9.24
  Rupee            64.93          63.03       -2.93
  Ringgit         4.2500         3.4965      -17.73
  Yuan            6.3520         6.2040       -2.33
 
 (; Editing by Biju Dwarakanath)

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