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EM ASIA FX-Asia FX dips after Fed, risk appetite supports
March 14, 2012 / 5:17 AM / 6 years ago

EM ASIA FX-Asia FX dips after Fed, risk appetite supports

SINGAPORE, March 14 (Reuters) - Most emerging Asian
currencies slipped on Wednesday as investors cut holdings in the
regional units after the Federal Reserve refrained from offering
signals on more policy easing, although investors bought on
dips, locking them in the recent ranges.	
    Expectation of yuan weakness also increased, adding to the
pressure. China's Premier Wen Jiabao said Beijing will allow the
yuan to float more freely and the People's Bank of China fixed
the currency weaker on Tuesday. 	
    Regional currencies found relief as risky assets including
stocks jumped after the Fed slightly upgraded its economic
outlook and after strong economic data from the United States
and Germany.   	
    "Investors cut bets on Asian currencies as hopes for more
U.S. quantitative easing weakened. But the Fed is not absorbing
liquidity yet and Asia will not see outflows soon. A firm dollar
backed by a strong economy has not been bad to Asian currencies,
historically," said Jeong My-young, a currency strategist at
Samsung Futures in Seoul.	
    "Still, we may not see strong long-betting on Asia as long
as investors are worried about slowing economies such as China
and in Europe," Jeong added.	
    The concerns have prompted investors to take profits from
emerging Asian currencies, main beneficiaries of inflows from
ample liquidity bolstered by major central banks' monetary
policy easing to boost growth.	
    On Wednesday, offshore funds sold the won, but the South
Korean currency's downside was limited by shipbuilders' demand.	
    "The recent range is getting stronger with risk-on factors
offsetting a firm dollar. But downside for dollar/won would be
limited," says a foreign bank dealer in Seoul.	
    The won has moved between 1,111.8 per dollar and 1,132.4
since February.	
    The Singapore dollar also shed, while the
city-state's currency found immediate support at 1.2630 per
greenback, a cluster of highs on hourly charts.	
    The next support level is seen at 1.2654-58, the low of
March 6 and a 55-day moving average.	
    	
  CURRENCIES VS U.S. DOLLAR	
  Change on the day at 0400 GMT	
  Currency    Latest bid   Previous day    Pct Move
  Japan yen        83.12          82.95       -0.20
  Sing dlr        1.2603         1.2580       -0.18
  Taiwan dlr      29.504         29.528       +0.08
  Korean won     1123.90        1121.50       -0.21
  Baht             30.67          30.62       -0.18
  Peso             42.69          42.66       -0.07
  Rupiah         9190.00        9160.00       -0.33
  Rupee            49.87          49.93       +0.13
  Ringgit         3.0360         3.0350       -0.03
  Yuan            6.3356         6.3270       -0.14
 
  Change so far in 2012
  Currency    Latest bid  End prev year    Pct Move
  Japan yen        83.12          76.92       -7.46
  Sing dlr        1.2603         1.2969       +2.90
  Taiwan dlr      29.504         30.290       +2.66
  Korean won     1123.90        1151.80       +2.48
  Baht             30.67          31.55       +2.87
  Peso             42.69          43.84       +2.69
  Rupiah         9190.00        9060.00       -1.41
  Rupee            49.87          53.08       +6.45
  Ringgit         3.0360         3.1685       +4.36
  Yuan            6.3356         6.2940       -0.66
 	
(Reporting by Jongwoo Cheon, Additional reporting by Ye-na Park
in SEOUL, Reuters FX Analyst Krishna Kumar in SYDNEY; Editing by
Ramya Venugopal)	
 	
   	
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