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EM ASIA FX-Yuan, other Asia currencies firmer as dollar falters, focus on Trump
January 10, 2017 / 4:53 AM / in a year

EM ASIA FX-Yuan, other Asia currencies firmer as dollar falters, focus on Trump

* Won gains 1 pct; Asian currencies rise broadly
    * Paring back of long U.S. dollar positions cited
    * Focus on US President-elect Donald Trump's news conference
    * Trump due to hold news conference in NY on Wednesday

 (Adds text, updates prices)
    By Masayuki Kitano
    SINGAPORE, Jan 10 (Reuters) - The Chinese yuan and other
emerging Asian currencies edged higher on Tuesday as the dollar
pulled back, with investors awaiting a news conference by U.S.
President-elect Donald Trump later this week for further clues
on policy and the direction of the greeback. 
    The South Korean won rose about 1 percent, while
the Indonesian rupiah touched its highest level in nearly
a month at one point and was last up 0.4 percent on the day. 
    The dollar retreated against a basket of six major
currencies, with the dollar index slipping 0.3 percent.
    The pullback in the dollar is probably due to position
squaring, said Stephen Innes, senior trader for FX broker OANDA
in Singapore.
    "What I'm starting to see evolve early in 2017 are little
short bursts of market momentum, followed up by quick
profit-taking," Innes said.
    One focus is whether Trump will provide any further details
on his fiscal policy proposals at a news conference on
Wednesday, Innes added. 
    The dollar will probably see some range-trading against
Asian currencies before Trump takes office on Jan. 20, said
Christopher Wong, senior FX strategist for Maybank.
    Traders will also be keeping an eye on comments from Fed
Chair Janet Yellen, who is due to speak on Thursday, Wong added.
    Yellen is due to give brief opening remarks and to take part
in a webcast town-hall meeting with educators on Jan. 12.
    Asian currencies have retreated broadly over the past couple
of months as U.S. bond yields jumped on expectations that
Trump's proposals for infrastructure spending and tax cuts will
prop up U.S. economic growth and inflation.
    Such rises in U.S. yields can reduce the attractiveness of
investing in emerging market assets and spur capital outflows
from such markets.    

  Change on the day at   0440 GMT                        
  Currency              Latest bid   Previous    Pct Move
  Japan yen                 115.41     116.04       +0.55
  Sing dlr                  1.4334     1.4364       +0.21
  Taiwan dlr                31.968     32.106       +0.43
  Korean won               1196.85    1208.30       +0.96
  Baht                       35.57      35.74       +0.48
  Peso                      49.505     49.620       +0.23
  Rupiah                     13310      13360       +0.38
  Rupee                      68.03      68.21       +0.27
  Ringgit                   4.4720     4.4750       +0.07
  Yuan                      6.9255     6.9330       +0.11
  Change so                                              
 far in 2017                                   
  Currency              Latest bid   End prev    Pct Move
  Japan yen                 115.41     117.07       +1.44
  Sing dlr                  1.4334     1.4490       +1.09
  Taiwan dlr                31.968     32.279       +0.97
  Korean won               1196.85    1207.70       +0.91
  Baht                       35.57      35.80       +0.66
  Peso                       49.51      49.72       +0.43
  Rupiah                     13310      13470       +1.20
  Rupee                      68.03      67.92       -0.15
  Ringgit                   4.4720     4.4845       +0.28
  Yuan                      6.9255     6.9467       +0.31
 (Reporting by Masayuki Kitano in SINGAPORE)

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