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EM ASIA FX-Exporters lift won, Taiwan dlr; wary of US, Greece, intervention
November 14, 2012 / 7:48 AM / 5 years ago

EM ASIA FX-Exporters lift won, Taiwan dlr; wary of US, Greece, intervention

* Bond inflows, exporters power won to 14-mth high
    * Taiwan dlr gains on exporters despite c.bank
    * Taiwan c.bank on Tue asks onshore banks to report trading

 (Adds text, updates prices)
    By Jongwoo Cheon
    SINGAPORE, Nov 14 (Reuters) - The South Korean won hit a
14-month high on exporter demand, leading gains among emerging
Asian currencies, although investors remain concerned over U.S.
fiscal problems and Greek aid uncertainty, and are wary of
intervention by regional authorities.
    The won found more support as interbank
speculators cut dollar holdings to stop losses. The foreign
exchange authorities were not spotted buying dollars to limit
the local currency's upside. 
    The Taiwan dollar also gained on demand from
exporters, although the central bank's request on Tuesday to
onshore traders to report their trades before actual dealing
limits speculative activity in the Taiwan currency, dealers
said.
    "Investors still dare to buy Asian currencies as there has
been no crash over the U.S. 'fiscal cliff' yet and on some hopes
for a deal in the first quarter of the next year," said Yuna
Park, a currency and bond analyst at Dongbu Securities in Seoul,
adding that the medium and long term outlook for regional
currencies is still bright.
    "But the U.S. and European issues cannot only cause a
correction but also seriously limit their upside. We also need
to be careful on Asian intervention," Park said.
    Investors have been focusing on how divided U.S. lawmakers
will handle the impact of automatic spending cuts and tax hikes,
which may threaten to push the world's top economy into
recession. 
    Greece could be another hurdle to emerging Asian currencies,
although a German newspaper said Germany wants to bundle Greek
aid into a single payment of more than 44 billion euros. Finance
Minister Wolfgang Schaeuble later said such an idea was under
consideration. 
    But that cannot happen until Greece's lenders reach a
broader agreement. The International Monetary Fund and euro zone
policymakers remain at odds over a long-term target to bring
Greece's debt down and the IMF's push for the euro zone to take
further losses on the debt.
    
    WON
    The won ended domestic trade at a session high of 1,084.9
per dollar, its strongest since Sept. 9, 2011.
    Earlier, Doosan Heavy Industries and Construction Co Ltd
 said it had a 1.1 trillion won ($1.01 billion)
letter of award to build a desalinisation plant in Saudi Arabia.
 
    "The won would be able to rise further as exporters appeared
to get more nervous, although we may see guerrilla-style
intervention, " said a foreign bank dealer in Seoul, referring
to sporadic dollar bids by the authorities when exporters are
away.
    
    TAIWAN DOLLAR
    The Taiwan dollar gained on exporter demand for settlement. 
  
    The central bank asked onshore banks to report their trades
before dealing and provide proof that the trades were linked to
real flows, dealers told Reuters.
    "Taiwan exports were not doing well, in view of the
uncertainty surrounding external demand. So regulators appear to
remain concerned over the Taiwan dollar's competitiveness," said
Frances Cheung, senior strategist at Credit Agricole CIB in Hong
Kong.
    That gives onshore interbank speculators little room to
place more bets on the Taiwan dollar, dealers said.
    But the island's exporters still hold U.S. dollar, so the
Taiwan dollar spot may head to 28.900 to the greenback, they
added.
    Offshore investors also bought the local unit in
non-deliverable forwards (NDFs) with the one-month
U.S. dollar/Taiwan dollar NDFs down to 28.890.
        
  CURRENCIES VS U.S. DOLLAR
  Change on the day at 0700 GMT
  Currency    Latest bid   Previous day    Pct Move
  Japan yen        79.74          79.38       -0.45
  Sing dlr        1.2216         1.2227       +0.09
  Taiwan dlr      29.033         29.129       +0.33
  Korean won     1084.95        1089.90       +0.46
  Baht             30.65          30.69       +0.11
  Peso             41.12          41.12       +0.00
  Rupiah         9635.00        9620.00       -0.16
  Rupee            54.88          54.88       +0.00
  Ringgit         3.0605         3.0638       +0.11
  Yuan            6.2252         6.2265       +0.02
 
  Change so far in 2012
  Currency    Latest bid  End prev year    Pct Move
  Japan yen        79.74          76.92       -3.54
  Sing dlr        1.2216         1.2969       +6.16
  Taiwan dlr      29.033         30.290       +4.33
  Korean won     1084.95        1151.80       +6.16
  Baht             30.65          31.55       +2.94
  Peso             41.12          43.84       +6.63
  Rupiah         9635.00        9060.00       -5.97
  Rupee            54.88          53.08       -3.28
  Ringgit         3.0605         3.1685       +3.53
  Yuan            6.2252         6.2940       +1.11
 ($1 = 1089.9400 Korean won)

 (Additional reporting by Miao-jung Lin in TAIPEI and Yena Park
in SEOUL, Editing by Jonathan Thatcher)

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