August 9, 2019 / 6:58 AM / a month ago

EM ASIA FX-China's yuan slips, on track for worst week in more than a year

    * Yuan on track to weaken 1.6% vs dollar for the week
    * Regional central banks join global peers in easing rates
    * India cbank will ease again in Oct - Reuters poll
    * Market sees Philippine cbank cutting rates this year again

 (Adds text, updates prices)
    By Nikhil Nainan
    Aug 9 (Reuters) - China's yuan, the focus of attention this
week, weakened slightly on Friday and was on track for its
biggest weekly loss since June 2018 after trade tensions with
the United States escalated.
    Most other Asian currencies barely moved ahead of what for
some markets will be a long weekend. 
    The yuan was headed for a loss against the U.S.
dollar of about 1.6% for the week, following Monday's drama when
it crossed the key 7 per dollar level for the first time since
the global financial crisis.
    The yuan on Friday was trading 0.1% lower at 7.05 a dollar. 
    The escalating U.S.-China trade war drove much of the
volatility across the region this week. 
    "Emerging market currencies have sold off pretty much across
the board, reflecting an increase in risk aversion," Capital
Economics said in a note. 
    Last week, U.S. President Donald Trump upped the ante after
a period of relative calm by announcing he plans to impose more
tariffs on Chinese imports from Sept 1.
    The Philippine peso lost 0.1% against the greenback
to 51.95 the day after the country's central bank joined a host
of other monetary authorities by easing policy in the face of
slowing global growth. 
    Bangko Sentral ng Pilipinas cut rates by 25 basis points, as
expected, on Thursday and kept the door open for further easing
after economic growth, announced on the same day, slipped to its
weakest in 17 quarters. 
    Earlier in the week, there were unexpected actions from
India's central bank, which cut more than predicted, and the
Bank of Thailand, which made its first rate cut since 2015. 
    On Friday, the rupee strengthened 0.3% to 70.515 a
dollar. A Reuters poll published on Friday said economists see
interest rates being cut for a fifth straight Reserve Bank of
India meeting in October. 
    The baht advanced 0.1% to 30.73 per dollar.
    Taiwan was closed for a public holiday.
 Change on the day at 0547 GMT                    
 Currency               Latest bid  Previous day  Pct Move
 Japan yen              105.950     106.06        +0.10
 Sing dlr               1.381       1.3817        +0.05
 Korean won             1210.200    1209.2        -0.08
 Baht                   30.720      30.75         +0.10
 Peso                   51.950      51.89         -0.12
 Rupiah                 14200.000   14205         +0.04
 Rupee                  70.515      70.69         +0.25
 Ringgit                4.186       4.183         -0.06
 Yuan                   7.050       7.0455        -0.07
 Change so far in 2019                            
 Currency               Latest bid  End 2018      Pct Move
 Japan yen              105.950     109.56        +3.41
 Sing dlr               1.381       1.3627        -1.33
 Taiwan dlr             31.363      30.733        -2.01
 Korean won             1210.200    1115.70       -7.81
 Baht                   30.720      32.55         +5.96
 Peso                   51.950      52.47         +1.00
 Rupiah                 14200.000   14375         +1.23
 Rupee                  70.515      69.77         -1.06
 Ringgit                4.186       4.1300        -1.33
 Yuan                   7.050       6.8730        -2.52
 (Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by
Richard Borsuk)
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