April 6, 2017 / 7:00 AM / 4 months ago

EM ASIA FX-Asian currencies slip on caution ahead of Trump-Xi meeting

4 Min Read

    * Risk sentiment turns cautious ahead of U.S.-China summit
    * Won, Taiwan dollar and rupee retreat

 (Adds text, updates prices)
    April 6 (Reuters) - Most emerging Asian currencies slipped
on Thursday, as risk sentiment turned cautious ahead of a United
States-China summit that could highlight trade tensions between
the world's two largest economies.
    The South Korean won led the losses with a drop
of 0.8 percent. A few other currencies also fell. The Taiwan
dollar shed 0.6 percent, while the Indian rupee
 eased 0.2 percent.
    Analysts said falls in regional equities
helped weigh on Asian currencies.
    Ahead of a meeting between U.S. President Donald Trump and
Chinese President Xi Jinping that starts on Thursday, investors
were probably trimming their positions, said Peter Chia, FX
strategist for United Overseas Bank.
    "It makes sense for players to take profits," he said.
    Chia added, however, that he wasn't expecting Asian
currencies to fall very sharply in the near term.   
    "I don't think the trend is changing as of now because the
political overhang is still there in the U.S... The political
factor will still dominate in the near-term."
    Uncertainty over the prospects for pro-growth fiscal
policies under the Trump administration has dragged down U.S.
bond yields and weighed on the dollar this year, supporting
emerging Asian currencies.
    
    S.KOREAN WON
    The won touched a three-week low of 1,134.1 per U.S. dollar
at one point, weighed down by concerns over geopolitical risks.

    The won fell after Japanese Prime Minister Shinzo Abe said
on Thursday that he and U.S. President Donald Trump agreed that
North Korea's latest ballistic missile launch was "a dangerous
provocation and a serious threat."
    North Korea test-fired a ballistic missile into the sea off
its east coast on Wednesday, ahead of the Trump-Xi summit.

    
    CURRENCIES VS U.S. DOLLAR
  Change on the day at   0632 GMT                        
  Currency                  Latest bid   Previous     Pct
                                              day    Move
  Japan yen                     110.50     110.70   +0.18
  Sing dlr                      1.4016     1.4010   -0.04
  Taiwan dlr                    30.548     30.381   -0.55
  Korean won                   1133.00    1124.40   -0.76
  Baht                           34.53      34.52   -0.03
  Peso                          50.170     50.150   -0.04
  Rupiah                         13332      13320   -0.09
  Rupee                          65.00      64.88   -0.17
  Ringgit                       4.4340     4.4295   -0.10
  Yuan                          6.8982     6.8975   -0.01
                                                         
  Change so far in                                       
 2017                                              
  Currency                  Latest bid   End prev     Pct
                                             year    Move
  Japan yen                     110.50     117.07   +5.95
  Sing dlr                      1.4016     1.4490   +3.38
  Taiwan dlr                    30.548     32.279   +5.67
  Korean won                   1133.00    1207.70   +6.59
  Baht                           34.53      35.80   +3.69
  Peso                           50.17      49.72   -0.90
  Rupiah                         13332      13470   +1.04
  Rupee                          65.00      67.92   +4.50
  Ringgit                       4.4340     4.4845   +1.14
  Yuan                          6.8982     6.9467   +0.70
 
 (Reporting by Masayuki Kitano; Additional reporting by Dahee
Kim in SEOUL)
  
 
 

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