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EM ASIA FX-Asia FX flat to higher against dollar as investors focus on US wages lag
July 10, 2017 / 6:26 AM / 5 months ago

EM ASIA FX-Asia FX flat to higher against dollar as investors focus on US wages lag

 (Adds details, updates prices)
    By Susan Mathew
    July 10 (Reuters) - Asian currencies were flat to higher on
Monday, as the greenback gave up earlier gains that followed
better than expected U.S. jobs data, with investors turning
their attention to sluggish wage growth and what that meant for
monetary policy.
    The greenback climbed on Monday lifted by June jobs growth
surging more than expected. However, Khoon Goh, head of Asia
research at ANZ Banking Group in Singapore said "the wage
numbers were not strong enough for the U.S. dollar to make more
meaningful gains", adding Asian currencies are treading water
for the day.
    The dollar index, which gauges the greenback against
a currency basket, was steady at 95.988 at 0609 GMT.
    Average hourly earnings in the United States increased 0.2
percent in June, lifting the year-on-year wage increase to 2.5
percent from 2.4 percent in May, suggesting some slack still
remains in the labour market.
    The gains in the region were led by the South Korean won
, up 0.4 percent. 
    The Taiwan Dollar was up 0.2 percent, snapping two
losing sessions, while the Indian rupee eked out
marginal gains, up 0.1 percent.
    A Reuters poll on Friday found the outlook for emerging
Asian currencies has improved compared with the beginning of the
year, driven largely by a weaker dollar as expectations for
major U.S. tax cuts faded.
    For the rest of the week, the focus will be on Fed Chair
Janet Yellen's testimony to the congress, which is expected to
cover recent policy decisions and the state of the economy.

    Ahead of Yellen's speech, "there is probably going to some
degree of concern with regards to rising advanced economy yields
led by European bond yields," said Wei Liang Chang, FX
strategist at Mizuho Bank.
    The yuan inched higher on Monday, up 0.08 percent after
China's June consumer price index number came in line with
    Consumer prices rose 1.5 percent in June from a year
earlier, while the producer price index climbed 5.5 percent,
also in line with expectations.
    "The main focus will be on the Q2 GDP numbers that will be
coming out next week, so we didn't get much reaction to the CPI
numbers today," said Goh.
    China's second quarter gross domestic product is scheduled
for release on July 17.
    The South Korean won gained as much as 0.5
percent in its second straight session of gains.
    "To some extent the market could be cautious that Bank of
Korea would be coming into the market. We could see some level
of central bank smoothing coming in and because of that people
are eager to take some profit on their long dollar-won
position," said Mizuho's Chang.
    The BoK is to hold its monetary policy meeting on July 13 to
announce interest rates.
    Thailand markets were shut on Monday for a local holiday.
 Change on the day at 0547 GMT                      
 Currency                 Latest bid  Previous day  Pct Move
 Japan yen                114.120     113.88        -0.21
 Sing dlr                 1.382       1.3816        +0.00
 Taiwan dlr               30.556      30.610        +0.18
 Korean won               1149.800    1154.3        +0.39
 Peso                     50.615      50.58         -0.07
 Rupiah                   13397.000   13402         +0.04
 Rupee                    64.500      64.59         +0.13
 Ringgit                  4.297       4.297         +0.00
 Yuan                     6.802       6.8067        +0.08
 Change so far in 2017                              
 Currency                 Latest bid  End 2016      Pct Move
 Japan yen                114.120     117.07        +2.58
 Sing dlr                 1.382       1.4490        +4.88
 Taiwan dlr               30.556      32.279        +5.64
 Korean won               1149.800    1207.70       +5.04
 Peso                     50.615      49.72         -1.77
 Rupiah                   13397.000   13470         +0.54
 Rupee                    64.500      67.92         +5.30
 Ringgit                  4.297       4.4845        +4.36
 Yuan                     6.802       6.9467        +2.13


 (Reporting by Susan Mathew in Bengaluru; Editing by Sam Holmes)

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