September 21, 2017 / 4:33 AM / 5 months ago

EM ASIA FX-Asian currencies languish as dollar revels in Fed hike expectations

 (Adds text, updates prices)
    By Anusha Ravindranath
    Sept 21 (Reuters) - Asian currencies fell on Thursday with
the Indian rupee skidding to its lowest in more than two months
as the dollar jumped after a hawkish-sounding U.S. Federal
Reserve signalled it expects one more interest rake hike this
    As expected, the Fed left interest rates unchanged after
concluding a two-day policy meeting on Wednesday, but signalled
it still expects one more rate hike by the end of the year
despite a recent bout of low inflation.
    The U.S. central bank also said it would begin in October to
cut back the massive bond holdings it acquired in the wake of
the 2008 global financial crisis.
    "As seen in 2015 and 2016, Asia woke up after the FOMC
meeting to the prospect of a Fed hike in December. I think the
dollar has a good chance to stay supported into the December Fed
hike." said Philip Sung Seng Wee, senior currency economist at
DBS Bank Ltd.
    "A repeat of the 'taper tantrums' will depend on whether
U.S. inflation returns strongly enough to lift the 10-year bond
yield above the Fed's 2-2.5 percent inflation target. For now,
the Fed's announced path to unwind its balance sheet is one that
starts out gently," he added. 
    Benchmark U.S. Treasury yields jumped to their highest
levels in six weeks, while the dollar index which tracks
the greenback against six major currencies was up as much as 0.2
percent after hitting a two-week high overnight.
    China's Yuan slipped to a more than three-week
low, while the Thai baht, Singapore dollar and
Malaysian ringgit fell to their lowest in a week.
     South Korea's won lost as much as 0.5 percent.

    The rupee fell to its lowest level in more than two
months, tracking weakness in its peers to trade at 64.52 against
the dollar. 
    Finance Minister Arun Jaitley said on Wednesday that India
was considering ways to revive its slowing economy and will
unveil the "necessary" steps once Prime Minister Narendra Modi
approved them.
    He declined to divulge details, saying the measures would be
unveiled only after consultation with Modi.
    "Actual measures need to be seen," said Anindya Dasgupta,
head of local market trading at Barclays. "Today it's again a
dollar move rather than a rupee move. The dollar has
strengthened against all currencies post FOMC, not only the
rupee," he added. 
    Taiwan's dollar fell to its lowest level in more
than two weeks on Thursday, with the resurgent greenback and
news of slowing export orders hurting the Taiwanese currency. 
    Taiwan's export orders rose for a 13th straight month in
August but at a slower pace, government data showed on
    The Taiwan dollar has gained about 7 percent this year.    
The following table shows rates for Asian currencies against the
dollar at 0355 GMT.
  Change on the day at                           
        0355 GMT                            
  Currency                Latest  Previous    Pct
                             bid       day   Move
  Japan yen              112.450    112.21  -0.21
  Sing dlr               1.352      1.3484  -0.24
  Taiwan dlr             30.173     30.132  -0.14
  Korean won             1132.00    1128.3  -0.33
  Baht                   33.110      33.06  -0.15
  Peso                   51.035     50.985  -0.10
  Rupiah                 13279.0     13279  +0.00
  Rupee                  64.460      64.26  -0.31
  Ringgit                4.200       4.186  -0.33
  Yuan                   6.591      6.5735  -0.27
  Change so far                                  
  Currency               Latest   End 2016    Pct
                         bid                 Move
  Japan yen              112.450    117.07  +4.11
  Sing dlr               1.352      1.4490  +7.20
  Taiwan dlr             30.173     32.279  +6.98
  Korean won             1132.00   1207.70  +6.69
  Baht                   33.110      35.80  +8.12
  Peso                   51.035      49.72  -2.58
  Rupiah                 13279.0     13470  +1.44
  Rupee                  64.460      67.92  +5.37
  Ringgit                4.200      4.4845  +6.77
  Yuan                   6.591      6.9467  +5.39

 (Reporting by Anusha Ravindranath in Bengaluru)
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below