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EM ASIA FX-Paris attacks, dour economic outlook hit Asia FX; yuan dips
November 16, 2015 / 5:48 AM / 2 years ago

EM ASIA FX-Paris attacks, dour economic outlook hit Asia FX; yuan dips

* IMF currency basket inclusion optimism little help to yuan
    * Won hits 6-week low as foreigners keep selling stocks
    * Rupiah near 4-week trough; exports, imports drop

 (Adds text, updates prices)
    By Jongwoo Cheon
    SINGAPORE, Nov 16 (Reuters) - Most emerging Asian currencies
lost ground on Monday as the deadly attacks in Paris and
downbeat economic data from Japan caused investors to flee
riskier assets.
    The Chinese yuan eased despite signs that it is
almost certain to be included in the International Monetary
Fund's currency basket. 
    South Korea's won hit a six-week low on
continuous foreign stock selling while Indonesia's rupiah
 fell to its weakest in nearly four weeks on
disappointing October exports and imports data. 
    The Thai baht dipped although it found some support
from data showing the country's economic growth in the third
quarter was stronger than expected. 
    Asian stocks lost more than 1 percent after suspected
Islamist militants launched coordinated attacks across Paris
that killed more than 130 people on Friday. French
warplanes pounded Islamic State positions in Syria on Sunday as
police in Europe widened their investigations. 
    After the attacks in Paris, the euro hit a 6-1/2-month low
against the yen and edged near 6-1/2-month lows against the
dollar.
    "The spate of terrorist attacks added to USD strength," said
Andy Ji, Asian currency strategist for Commonwealth Bank of
Australia in Singapore, expecting emerging Asian currencies to
stay weaker.
    The Federal Reserve may not consider the attacks in Paris at
its policy meeting in December when the U.S. central bank is
expected to raise interest rates, Ji said.
    "The economic impact is not material enough to be introduced
into Fed's policy formulation."
    Emerging Asian currencies have been under pressure from
growing expectations of the Fed's liftoff in December. The
University of Michigan's consumer sentiment index beat
forecasts, gaining for the second straight month and showed an
improvement in buying plans for large discretionary purchases.
    By contrast, Japan's economy slid back into recession in
July-September as uncertainty over the overseas outlook hurt
business sentiment. 
    
    WON
    The won lost as much as 0.9 percent to 1,174.7 per dollar,
its weakest since Oct. 5.
    Seoul shares fell 1.3 percent as foreign investors
sold them for a fifth consecutive session.
    The South Korean currency pared some of its earlier losses
as exporters bought the unit for settlements with a chart
support at 1,175.1, the 61.8 percent Fibonacci retracement of
its appreciation from September to October.
    Offshore funds did not actively sell the won around that
level, traders said.
    
    RUPIAH
    The rupiah fell 0.6 percent to 13,740 per dollar, its
weakest since Oct. 21.
    Indonesia's exports and imports in October fell much more
than expected, although its trade surplus beat a market
forecast.
    Jakarta shares lost nearly 1 percent.
    The official Jakarta Interbank Spot Dollar Rate,
which the central bank introduced in 2013 to manage exchange
rate fluctuations, was fixed at 13,732, weaker than the previous
13,633.
    
    CURRENCIES VS U.S. DOLLAR
    Change on the day at 0515 GMT
  Currency    Latest bid   Previous day    Pct Move
  Japan yen       122.47         122.62       +0.12
  Sing dlr        1.4245         1.4185       -0.42
  Taiwan dlr      32.807         32.908       +0.31
  Korean won     1172.70        1163.80       -0.76
  Baht             36.00          35.94       -0.17
  Peso             47.24          47.05       -0.40
  Rupiah        13740.00       13660.00       -0.58
  Rupee            66.20          66.10       -0.16
  Ringgit         4.3880         4.3700       -0.41
  Yuan            6.3787         6.3740       -0.07
 
  Change so far in 2015
  Currency    Latest bid  End prev year    Pct Move
  Japan yen       122.47         119.66       -2.30
  Sing dlr        1.4245         1.3260       -6.91
  Taiwan dlr      32.807         31.718       -3.32
  Korean won     1172.70        1099.30       -6.26
  Baht             36.00          32.90       -8.61
  Peso             47.24          44.72       -5.33
  Rupiah        13740.00       12380.00       -9.90
  Rupee            66.20          63.03       -4.79
  Ringgit         4.3880         3.4965      -20.32
  Yuan            6.3787         6.2040       -2.74
 
    

 (Editing by Jacqueline Wong)

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