* Asian currencies rise on Emmanuel Macron's victory in
* Indian rupee is the top gainer on surging domestic
* China's yuan is likely to appreciate in the next 2-3
* South Korean won positive ahead of presidential elections
(Adds text, updates prices)
By Patturaja Murugaboopathy
May 8 Asian currencies edged up on Monday as
markets breathed a sigh of relief after centrist Emmanuel Macron
was elected French President following a resounding victory over
far-right Marine Le Pen, who had threatened to take France out
of the European Union.
The resulting bounce in risk appetite boosted Asian shares
by over half a percent and crude oil by more
than 1 percent.
Macron's win put to bed fears of another populist upheaval
after Britain's vote to exit the European Union last year spread
turmoil in global markets.
Elections were very much the focus in South Korea too, with
the won up a touch ahead of Tuesday's presidential
vote in which leading liberal candidate Moon Jae-in likely to
Moon, the son of North Korean refugees who came to the South
during the 1950-53 Korean War, would end nine years of
conservative rule in Seoul if elected, a time when Pyongyang
stepped up its nuclear and missile tests
The Indian rupee led the gainers in the region
thanks to strong equity markets, in a sign foreign investors
were returning after turning net sellers last week.
The Indonesian rupiah was trading flat after the Bank
Indonesia's chief said the central bank has been intervening in
the foreign exchange market to curb strong rupiah appreciation.
The rupiah, which climbed 2 percent this year up until
mid-April, has lost about half a percent since then.
In the United States, fresh data suggested the Federal
Reserve is on course for a June rate hike, but pressure on
regional currencies could be limited as markets are more or less
priced in for a Fed move.
Friday's U.S. jobs data showed a sharp rebound in April
that pointed to a tightening labor market.
"Fed rate hike for June is almost 100 percent priced in.
Hence dollar movement can be limited against Asian currencies."
said Sean Yokota, head of Asia strategy at Skandinaviska
China's yuan was trading flat against the dollar,
but the reaction was limited to official data showing April's
exports data missed market expectations.
However, some analysts were bullish on the yuan, with the
10-year treasury yield < CN10YT=RR> touching the highest level
in nearly two years on Monday in the wake of Beijing's
stepped-up campaign to reduce leverage and ward off risks in the
"People should go long on CNH over the next two months.
The impact of leverage is to cool than crush the market." said
Yokota, who expects CNH to trade at 6.82 levels in two to three
months time. The offshore yuan was currently trading at
6.9030 per dollar.
The official data also showed China's foreign exchange
reserves rose in April for a third straight month which
indicated China could afford to support the yuan to discourage
bearish-yuan bets that might spur capital outflows.
SOUTH KOREAN WON
The South Korean won was up 0.14 percent against
the dollar ahead of the presidential election on Tuesday.
The elections results are expected to bring some political
certainty after former president Park Geun-hye was ousted in
March over corruption charges.
"Regardless the final results, this election is viewed
positively by investors as it is widely expected to end the
uncertainties brought by the former President Park’s
impeachment." DBS said in a note.
Few pre-polls show liberal candidate Moon is likely to
Among other things, Moon advocates a removal of the US THAAD
missile defense system and re-engaging North Korea in talks,
which would appease both China and its antagonistic northern
CURRENCIES VS U.S. DOLLAR
Change on the day at
Currency Latest bid Previous day Pct
Japan yen 112.680 112.71 +0.03
Sing dlr 1.403 1.4044 +0.07
Taiwan dlr 30.148 30.182 +0.11
Korean won 1131.400 1132.7 +0.11
Baht 34.610 34.66 +0.14
Peso 49.825 49.91 +0.17
Rupiah 13310.000 13327 +0.13
Rupee 64.215 64.37 +0.24
Ringgit 4.332 4.335 +0.08
Yuan 6.902 6.9026 +0.00
Change so far
Currency Latest bid End 2016 Pct
Japan yen 112.680 117.07 +3.90
Sing dlr 1.403 1.4490 +3.25
Taiwan dlr 30.148 32.279 +7.07
Korean won 1131.400 1207.70 +6.74
Baht 34.610 35.80 +3.44
Peso 49.825 49.72 -0.21
Rupiah 13310.000 13470 +1.20
Rupee 64.215 67.92 +5.77
Ringgit 4.332 4.4845 +3.53
Yuan 6.902 6.9467 +0.64
(Reporting By Patturaja Murugaboopathy in Bengaluru,; Editing
by Shri Navaratnam)