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EM ASIA FX-Asian currencies rise as Flynn resignation dents dollar
February 14, 2017 / 7:17 AM / 10 months ago

EM ASIA FX-Asian currencies rise as Flynn resignation dents dollar

    * Asia currencies rise broadly as dollar slips
    * Trump national security adviser Flynn resigns
    * Won leads gains with rise of more than 1 pct
    * Market awaits Yellen's testimony to Congress

 (Adds text, updates prices)
    SINGAPORE, Feb 14 (Reuters) - Asian currencies rose on
Tuesday as the resignation of U.S. President Donald Trump's
national security adviser dented the dollar, with the South
Korean won getting an additional lift as local exporters sold
the greenback.
    The won outperformed its regional peers and closed onshore
trade at 1137.4 per dollar, rising 1.2 percent on the
day. 
    The won's sharp gains came as local exporters stepped up
their dollar-selling. Some Seoul-based dealers said
dollar-selling by offshore funds added to the momentum.
    Most other Asian currencies also gained ground.
    The Taiwan dollar touched a high of 30.745 per U.S.
dollar, its strongest level since June 2015. After paring some
gains, the Taiwan dollar was up 0.6 percent at 30.835. 
    The Singapore dollar edged up 0.4 percent, while
the Thai baht rose 0.3 percent.
    The gains in Asian currencies came as the greenback came
under pressure following news that Trump's national security
adviser, Michael Flynn, resigned late on Monday.  
    Flynn's resignation came after revelations that he had
discussed U.S. sanctions on Russia with the Russian ambassador
to the United States before Trump took office and misled Vice
President Mike Pence about the conversations.
    Andy Ji, Asian currency strategist for Commonwealth Bank of
Australia, said the news could reinforce doubts over whether
Trump can carry out all the policies he has promised to
implement, including reflationary economic policies.
    "Those are the basis for dollar strength since his election
win. The market is starting to scale back a lot of expectations
on that front," Ji said.
    "It's sort of a double whammy because every time people have
doubts over...upcoming economic policies, people scale back on
expectations in terms of the Fed's policy as well," he said,
referring to market expectations for further rises in U.S.
interest rates.    
    Traders were also awaiting U.S. Federal Reserve Chair Janet
Yellen's testimony to Congress on Tuesday and Wednesday.
    Some market participants are likely to reduce their
positions ahead of Yellen's testimony later on Tuesday, said a
trader for a Malaysian bank in Kuala Lumpur.

    CURRENCIES VS U.S. DOLLAR
  Change on the day at   0655 GMT                      
  Currency                Latest bid   Previous     Pct
                                            day    Move
  Japan yen                   113.29     113.74   +0.39
  Sing dlr                    1.4174     1.4235   +0.43
  Taiwan dlr                  30.835     31.030   +0.63
  Korean won                 1137.05    1152.00   +1.31
  Baht                         34.97      35.07   +0.29
  Peso                        49.865     49.920   +0.11
  Rupiah                       13320      13325   +0.04
  Rupee                        66.93      67.02   +0.13
  Ringgit                     4.4450     4.4470   +0.04
  Yuan                        6.8723     6.8780   +0.08
                                                       
  Change so                                            
 far in 2017                                     
  Currency                Latest bid   End prev     Pct
                                           year    Move
  Japan yen                   113.29     117.07   +3.34
  Sing dlr                    1.4174     1.4490   +2.23
  Taiwan dlr                  30.835     32.279   +4.68
  Korean won                 1137.05    1207.70   +6.21
  Baht                         34.97      35.80   +2.39
  Peso                         49.87      49.72   -0.29
  Rupiah                       13320      13470   +1.13
  Rupee                        66.93      67.92   +1.48
  Ringgit                     4.4450     4.4845   +0.89
  Yuan                        6.8723     6.9467   +1.08
                                                       
 
 (Reporting by Masayuki Kitano; Additional reporting by Dahee
Kim and Yena Park in Seoul; Editing by Kim Coghill)
  
 
 

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