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EM ASIA FX- Most emerging Asian currencies inch lower as dollar edges up
March 28, 2017 / 7:41 AM / 8 months ago

EM ASIA FX- Most emerging Asian currencies inch lower as dollar edges up

    * Some Asian currencies fall on profit-taking
    * Technical indicators show some currencies are overbought
    * India, Indonesia markets closed for holiday

 (Adds details, updates prices)
    By Patturaja  Murugaboopathy 
    March 28 (Reuters) - Most emerging Asian currencies on
Tuesday fell from multi-month highs the previous day as the
dollar gained back a bit of strength and traders took profits on
regional units.
    The dollar recovered from a four-month-low as anxiety over
Donald Trump's setback on healthcare gave way to tentative hopes
for the U.S. President's planned stimulus policies.
    "Today is a day of reflection and consolidation," said
Stephen Innes, senior trader at OANDA, adding that there were
waves of profit-taking. 
    Technical indicators such as the Relative Strength Index
showed the Taiwan dollar, the Indian rupee 
and the Thai baht are in the overbought zone and a few
other currencies near that zone.
    The Malaysian ringgit declined on weak crude oil
prices which were hovering near a four month low, while the
South Korean won which fell earlier on the day on
dollar short covering, recovered later.
    The Philippine peso was slightly down, due to
dollar demand from corporate and foreign outflows from the
equity markets.
    Foreigners have net sold about $130 million in Philippine
equities, according to the exchange data.
    Markets in India and Indonesia were closed for public
holidays.
    The dollar index was up 0.1 percent on Tuesday. It
has fallen nearly 3 percent this month.  If it declined another
2 percent, that would take it to levels before Donald Trump won
the November election to be U.S. president. 
    With collapse of the healthcare legislation late last week,
doubts have emerged about whether Trump can pass his other
reforms such as tax cuts and infrastructure spending, the bets
on which the dollar rose sharply since November.
    While two more likely Fed rate hikes this year are expected
to support the greenback, some analysts said the rate hikes are
not a certainty with mounting risks ahead.
    Given political uncertainty, a rate hike in the United
States in June is not guaranteed, and "that favours the emerging
market currencies, especially the high yielders," Innes said.
    On Wednesday, British Prime Minister Theresa May will
formally notify the European Union of Britain's intention to
leave it, triggering Article 50 of the Lisbon Treaty and
launching two years of unprecedented negotiations. However
analysts said its impact on emerging Asian currencies would be
small.
    "EM Asia currencies are not expected to be knocked back in
'risk off' moves," Mizuho senior economist Vishnu Varathan wrote
in a note.
    
    YUAN SLIP     
    China's yuan fell 0.12 percent to 6.8843 per
dollar.
    While other emerging Asian currencies have been volatile in
line with dollar movements over the past few weeks, the yuan has
been resilient. The 3-month volatility of China's yuan stood at
3.8 percent on Tuesday, the lowest among the emerging Asian
currencies.
    "Yuan is relatively steady, ahead of the release of U.S
Treasury FX report" said Qi Gao, FX strategist for Scotiabank in
Singapore.
    The U.S. Treasury's next report on the issue is due in
April. It is awaited to see if any country will be labelled a
currency-manipulator.
    
 CURRENCIES VS U.S. DOLLAR
   Change on the day                                     
    at   0730 GMT                               
  Currency             Latest bid     Previous   Pct Move
                                           day  
  Japan yen            110.630          110.65      +0.02
  Sing dlr             1.395            1.3932      -0.09
  Taiwan dlr           30.155           30.250      +0.32
  Korean won           1113.000         1112.8      -0.02
  Baht                 34.411           34.389      -0.06
  Peso                 50.175            50.12      -0.11
  Rupiah*              13309.000         13309      +0.00
  Rupee*               65.035            65.04      +0.00
  Ringgit              4.415             4.409      -0.14
  Yuan                 6.885            6.8767      -0.11
 * Closed for market                                     
 holiday                                        
  Change so far                                          
  Currency             Latest bid  End 2016      Pct Move
  Japan yen            110.630          117.07      +5.82
  Sing dlr             1.395            1.4490      +3.91
  Taiwan dlr           30.155           32.279      +7.04
  Korean won           1113.000        1207.70      +8.51
  Baht                 34.411            35.80      +4.04
  Peso                 50.175            49.72      -0.91
  Rupiah               13309.000         13470      +1.21
  Rupee                65.035            67.92      +4.44
  Ringgit              4.415            4.4845      +1.57
  Yuan                 6.885            6.9467      +0.90
                                                
                                                
 
 (Reporting by Patturaja Murugaboopathy; Editing by Richard
Borsuk)
  
 
 

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