June 14, 2017 / 6:17 AM / 2 months ago

EM ASIA FX- Asian currencies steady ahead of Fed decision, inflation report

 (Adds details, updates prices)
    By Susan Mathew
    June 14 (Reuters) - Asian currencies were steady on
Wednesday as investors awaited  results of the Federal Reserve
meeting and clues on the pace of further U.S. rate hikes as well
as signals on the country's inflation outlook.
    "The FOMC is clouding the dollar sentiment so investors are
content sitting on the sidelines and not really doing much
today" said Stephen Innes, senior trader at OANDA.
    The dollar index, which tracks the greenback against
a basket of six major rivals, edged down 0.02 percent at 0541
GMT.
    Conviction for a move beyond a widely expected rise now has
faded for many forecasters along with the outlook for inflation
for most, a Reuters poll showed.
    Growing doubts about the U.S. administration's ability to
pass tax and healthcare reforms through Congress, along with
weak U.S. economic data have investors expecting a more dovish
outlook, which would mean a greater gain for the Asian
currencies, analysts say.
    The U.S. May consumer price inflation data is also scheduled
to be out on Wednesday morning Washington time.
    "The CPI data could actually provide significant bounce to
the dollar. The CPI data for the last two months have come out
negative and this is what really cooled the markets' expectation
for a further rate hike beyond June" Innes said.

    Among regional currencies, the South Korean won
edged up 0.3 percent on Wednesday, recouping losses from its
previous session. 
    Meanwhile, the Taiwan and Singapore dollars
 edged lower, down 0.05 percent and 0.03 percent
respectively.
    
    CHINESE YUAN 
    The yuan, which weakened the past two days, edged
up 0.06 percent, after a slew of mixed economic data on
Wednesday.
    China's factory output grew 6.5 percent in May from a year
earlier, slightly better than expectations, but fixed-asset
investment grew 8.6 percent in the first five months of the
year, less than forecast.
    After last week's readings from China purchasing managers'
index  surveys, Wednesday's data "looks supportive and I think
this is going to look pretty decent in the broader picture for
the regional sentiment," Innes added. "I would expect the risk
on-sentiment to play positively. 

    
    SOUTH KOREAN WON 
    The won rose after three straight sessions of
losses as a bounce in tech stocks on Wall Street took some
pressure off following the rout in them.
    The Korea SE Electric and Electronics index climbed
as much as 1.3 percent during Wednesday trade, but then the
gains were erased.
    

 CURRENCIES VS U.S. DOLLAR
 Change on the day at 0541 GMT                       
 Currency                  Latest bid  Previous day  Pct Move
 Japan yen                 110.060     110.05        -0.01
 Sing dlr                  1.381       1.3807        -0.03
 Taiwan dlr                30.243      30.227        -0.05
 Korean won                1124.600    1128.3        +0.33
 Baht                      33.918      33.92         +0.01
 Peso                      49.520      49.535        +0.03
 Rupiah                    13285.000   13290         +0.04
 Rupee                     64.323      64.33         +0.02
 Ringgit                   4.260       4.261         +0.02
 Yuan                      6.796       6.7989        +0.04
                                                     
 Change so far in 2017                               
 Currency                  Latest bid  End 2016      Pct Move
 Japan yen                 110.060     117.07        +6.37
 Sing dlr                  1.381       1.4490        +4.92
 Taiwan dlr                30.243      32.279        +6.73
 Korean won                1124.600    1207.70       +7.39
 Baht                      33.918      35.80         +5.55
 Peso                      49.520      49.72         +0.40
 Rupiah                    13285.000   13470         +1.39
 Rupee                     64.323      67.92         +5.59
 Ringgit                   4.260       4.4845        +5.27
 Yuan                      6.796       6.9467        +2.21
 
 (Reporting by Susan Mathew in Bengaluru; Editing by Richard
Borsuk)
  
 
 

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