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EM ASIA FX-Decline in stocks, oil pressure Asia FX; yuan edges up
June 28, 2017 / 5:59 AM / 3 months ago

EM ASIA FX-Decline in stocks, oil pressure Asia FX; yuan edges up

 (Adds text, updates prices)
    By Shashwat Pradhan
    June 28 (Reuters) - Most emerging Asian currencies drifted
lower on Wednesday, tracking weaker regional equities, while
minor declines in oil prices in early trade checked risk
appetites.
    Asian shares slumped after Wall Street was knocked hard in
the wake of a delay to a U.S. healthcare reform vote.

    The benchmark S&P 500 posted its biggest one-day drop
in about six weeks and closed at its lowest point since May 31
after Senate Republican leader Mitch McConnell decided to put
off a planned vote on a bill to dismantle the Affordable Care
Act until after the Senate's July 4 recess.
    "The delay in Senate vote has rekindled concerns over Trump
administration’s ability to deliver its economic agenda, as the
delay might push back the timeline for eagerly-awaited tax
reforms," Mizuho Bank said in a note to clients.
    The healthcare legislation, which has encountered resistance
from several Republicans, is the first plank of Trump's domestic
policy agenda, with investors eager for him to move onto his
other business-friendly plans including tax cuts, infrastructure
spending and deregulation.
    Risk sentiment was also undermined by oil markets, which
were flat to lower after a report of rising U.S. fuel and crude
inventories underscored concerns that a three-year supply glut
is far from over.
    The Korean won was among the big decliners in
Asia, shedding as much as 0.6 percent to touch a one-week low.
    Meanwhile, the Singapore dollar edged up, remaining
on track to rise against its U.S. counterpart for a second day.
    Singapore's central bank will streamline regulatory
requirements to allow banks to conduct or invest in
non-financial e-commerce businesses, it said late on
Tuesday.
    
    PHILIPPINE PESO
    
    The Philippine peso fell as much as 0.4 percent
to 50.505 on Wednesday , its weakest level in nearly eleven
years.
    The Philippines' Bureau of the Treasury said on Tuesday it
plans to raise as much as 195 billion pesos from the local debt
market in the third quarter, 27 percent more than the amount it
raised in the current quarter.
    The currency has been among the worst performers in the
region this year, weakening more than one percent against the
dollar.
    The non-deliverable outright market expects the 
currency to depreciate to 51.500 against the dollar in a year.
    
    CHINA'S YUAN
    
    The Chinese yuan edged up as much as 0.3 percent
on to hit a near two-week high.
    Prior to market opening, the People's Bank of China (PBOC)
set the yuan midpoint at 6.8053 per dollar, lifting
it 239 pips from Tuesday's fixing to the strongest level since
June 19.
    Gains in the yuan were supported by Chinese state-owned
banks, as happened on Tuesday afternoon, traders
said.
     Moreover, a private survey showed China's economy continued
to improve in the second quarter, with corporate profits rising
and hiring up.
    "Over the remainder of the year, we believe the nation
(China) will manage to avert any intense market worries over the
yuan’s depreciation before the 19th Party Congress in the
autumn," said Qi Gao, FX strategist at Scotiabank. 
    
    The following table shows rates for Asian currencies against
the dollar at 0525 GMT.
    
    CURRENCIES VS U.S. DOLLAR

  Currency               Latest bid  Previous day  Pct Move
  Japan yen              112.190           112.34     +0.13
  Sing dlr               1.386             1.3869     +0.09
  Taiwan dlr             30.402            30.341     -0.20
  Korean won             1142.500          1136.9     -0.49
  Baht                   33.988            33.955     -0.10
  Peso                   50.470             50.29     -0.36
  Rupiah*                13325.000          13325      0.00
  Rupee                  64.523             64.53      0.00
  Ringgit                4.297             4.2865     -0.24
  Yuan                   6.801             6.8145     +0.20
                                                           
  Change so far in 2017                                    
  Currency               Latest bid  End 2016      Pct Move
  Japan yen              112.190           117.07     +4.35
  Sing dlr               1.386             1.4490     +4.57
  Taiwan dlr             30.402            32.279     +6.17
  Korean won             1142.500         1207.70     +5.71
  Baht                   33.988             35.80     +5.33
  Peso                   50.470             49.72     -1.49
  Rupiah*                13325.000          13470     +1.09
  Rupee                  64.523             67.92     +5.27
  Ringgit                4.297             4.4845     +4.36
  Yuan                   6.801             6.9467     +2.15
 * Financial market in Indonesia is closed for holiday.
    

 (Reporting By Shashwat Pradhan in Bengaluru; Editing by Shri
Navaratnam)
  
 
 

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