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EM ASIA FX-Chinese yuan on track for best quarter since 2008; won touches 11-week low
June 30, 2017 / 6:12 AM / 2 months ago

EM ASIA FX-Chinese yuan on track for best quarter since 2008; won touches 11-week low

 (Adds text, updates prices)
    By Christina Martin
    June 30 (Reuters) - China's yuan extended gains
for a fourth straight session on Friday and was headed for its
best quarter since June 2008, helped by a weaker dollar and
better-than-expected manufacturing data. 
    The People's Bank of China set the yuan midpoint
at 6.7744 per dollar prior to market opening, its strongest
level since November 7, 2016.
    The strength in the official guidance reflected weakness in
the dollar, which sank to a near nine-month low against a basket
of currencies in the overseas market.
    The dollar was bogged down by growing expectations of more
hawkish monetary policies in Europe and Canada and doubts about
another U.S. interest rate increase this year.
    The yuan was up about 1 percent for the week, set for its
best week since July 2005, and gained 1.7 percent against the
dollar for the quarter.
    China's manufacturing sector expanded at its quickest pace
in three months in June, buoyed by strong production and new
orders, reassuring news for authorities trying to strike a
balance between de-leveraging and keeping the economy on an even
keel.
    The official manufacturing Purchasing Managers' Index (PMI)
was at 51.7 in June, the eleventh straight month of expansion,
and up from 51.2 in May, a monthly survey by the National Bureau
of Statistics showed on Friday.
    Separately, official data showed that China recorded a
surplus in its capital and financial account in the first
quarter, indicating net capital inflows as policymakers
tightened supervision of outflows.
    In other Asian currencies, the Malaysian ringgit
gained 0.1 percent and the Philippine peso snapped
three straight days of losses. 
    "The Asian net portfolio flow environment remains generally
supportive except for the Indian rupee, where inflow momentum
continues to moderate," OCBC said in a note.
    The Indian rupee was set for its fourth straight
day of declines, losing as much as 0.2 percent to hit a two-week
low. 
    
    KOREAN WON
    South Korea's won traded down as much as 0.5
percent on Friday, its lowest level in over 11 weeks, as
investors backed away from emerging markets in the wake of a
broad decline in global stock markets.
    South Korean bond sales by Franklin Templeton raised
concerns over potential capital outflows, putting further
pressure on the won.
    U.S. President Donald Trump will press South Korean
President Moon Jae-in to solve trade differences over cars and
steel in meetings in Washington focusing on the nuclear threat
from North Korea.
    South Korean shares edged down after a big rebound the
previous day, with the Korea Composite Stock Price Index (KOSPI)
 down 0.5 percent at 2,384.57 points.
    The won has fallen about 2.1 percent this quarter. 
    
    SINGAPORE DOLLAR
    The Singapore dollar rose for a fourth consecutive
day on Friday, up as much as 0.2 percent, touching it highest in
more two weeks.
    Singapore's total bank lending in May rose 0.32 percent from
April as lending to general commerce increased, central bank
data showed on Friday.
    Bank lending in May rose 6.8 percent from a year earlier.
    The Singapore dollar gained 1.4 percent in the quarter and
is headed for its second straight quarter of gains.
    
    The following table shows rates for Asian currencies against
the dollar at 0537 GMT.
    
    CURRENCIES VS U.S. DOLLAR
 Currency               Latest bid  Previous day  Pct Move
 Japan yen              111.930     112.16        +0.21
 Sing dlr               1.377       1.3791        +0.15
 Taiwan dlr             30.389      30.370        -0.06
 Korean won             1142.700    1141.1        -0.14
 Baht                   33.978      33.94         -0.11
 Peso                   50.370      50.53         +0.32
 Rupiah*                13325.000   13325         +0.00
 Rupee                  64.680      64.63         -0.08
 Ringgit                4.292       4.292         +0.01
 Yuan                   6.768       6.7851        +0.26
                                                  
 Change so far in 2017                            
 Currency               Latest bid  End 2016      Pct Move
 Japan yen              111.930     117.07        +4.59
 Sing dlr               1.377       1.4490        +5.23
 Taiwan dlr             30.389      32.279        +6.22
 Korean won             1142.700    1207.70       +5.69
 Baht                   33.978      35.80         +5.36
 Peso                   50.370      49.72         -1.29
 Rupiah*                13325.000   13470         +1.09
 Rupee                  64.680      67.92         +5.01
 Ringgit                4.292       4.4845        +4.50
 Yuan                   6.768       6.9467        +2.65
 * Financial markets in Indonesia are closed for a holiday.

 (Reporting by Christina Martin in Bengaluru; Editing by Sunil
Nair)
  
 
 

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