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EM ASIA FX-Most Asian currencies steady, Fed rate hike seen largely priced in
March 6, 2017 / 5:51 AM / 9 months ago

EM ASIA FX-Most Asian currencies steady, Fed rate hike seen largely priced in

    * Most Asian currencies rise against the dollar
    * Analysts say Fed rate hike is priced in
    * China slightly lowers its GDP growth for 2017

 (Adds text, updates prices)
    By Patturaja  Murugaboopathy 
    BENGALURU, March 6 (Reuters) - Most Asian currencies edged
up on Monday after sharp falls last week as the dollar dipped on
profit taking.
    Traders said an expected interest rate hike by the U.S.
Federal Reserve next week was largely priced into markets
    The Taiwan dollar, which fell about 1 percent last
week, was supported by gains in local equity markets as they
rose more than a quarter of a percent. The Taiwan dollar was up
0.1 percent on the day at 30.987 per dollar. 
    The Indonesian rupiah was up 0.2 percent on 
expectations of increased tax amnesty inflows ahead of the month
end dateline.
    The South Korean won was pressured by rising geo-political
risks after North Korea fired ballistic misslies early on
    Having risen by more than 1.5 percent over the past month,
the dollar index, which measures the greenback against a
basket of six major currencies, fell for a second consecutive
day as traders took profits ahead of the Fed meeting on March
    Fed funds futures prices show traders see a roughly 80
percent chance of a rate increase this month, up from just a one
in three chance early last week, according to CME Group's Fed
Watch tool.
    "I don't see a lot of panic in the market today. With a
March hike now completely priced in, today's price action
suggests that further dollar upside is limited in the near
term," said Stephen Innes, a senior trader at OANDA.
    China's yuan was little changed, after the government cut
its growth target for this year to 6.5 percent, compared to last
year's growth of 6.7 percent.
    Analysts said the decline was marginal and added that the
government's focus on reforms was positive for the region.
    "The details from China suggest that any (economic) hard
landing scenario is unlikely to materialise and they are serious
about reforms and settling overcapacity and debt issues. That is
a positive for Asia as whole" said Roy Teo, senior FX strategist
at ABN AMRO bank.
 CURRENCIES VS                                    
 U.S. DOLLAR                               
  Change on the                                   
  day at   0533                            
  Currency          Latest bid   Previous      Pct
                                      day     Move
  Japan yen       113.890          113.99    +0.09
  Sing dlr        1.411            1.4098    -0.10
  Taiwan dlr      30.987           31.020    +0.11
  Korean won      1156.700         1156.1    -0.05
  Baht            35.036           35.046    +0.03
  Peso            50.385             50.4    +0.03
  Rupiah          13360.000         13380    +0.15
  Rupee           66.740            66.81    +0.10
  Ringgit         4.450             4.452    +0.04
  Yuan            6.895            6.8990    +0.07
  Change so far                                   
 in 2016                                   
  Currency        Latest bid    End prev       Pct
                                year          Move
  Japan yen       113.89           117.07    +2.79
  Sing dlr        1.4112           1.4490    +2.68
  Taiwan dlr      30.981           32.279    +4.19
  Korean won      1156.67         1207.70    +4.41
  Baht            35.04             35.80    +2.18
  Peso            50.39             49.72    -1.32
  Rupiah          13360             13470    +0.82
  Rupee           66.74             67.92    +1.77
  Ringgit         4.4500           4.4845    +0.78
  Yuan            6.8945           6.9467    +0.76
 (Reporting by Patturaja Murugaboopathy in Bengaluru; Editing by
Richard Borsuk and Kim Coghill)

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