November 8, 2017 / 7:34 AM / a year ago

EM ASIA FX-Asian currencies mixed as dollar weakens on tax doubts, oil hits major importers

 (Adds text, updates prices)
    By Patturaja  Murugaboopathy 
    Nov 8 (Reuters) - Asian currencies were mixed on Wednesday
as uncertainties about the U.S. tax reform plan led to broad
dollar weakness while the recent surge in oil prices hit
currencies of major oil importing countries. 
    The dollar was down 0.2 percent at 113.800 yen,
falling away from an eight-month high of 114.735 touched on
Monday. The greenback's fall was due to a media report that
suggested a centrepiece corporate tax cut under discussion in
U.S. tax reforms plans could be delayed.
    Singapore dollar, China's yuan and Thai
baht, all gained against the dollar on the day.
    Meanwhile, crude oil prices hovered near two-year highs,
weighing on currencies of major oil importers in the region,
such as the Indian rupee, Indonesian rupiah
and the Philippine peso.
    "Dollar-peso is going up because of corporate demand. We are
seeing a lot more corporate demand right now, which is oil
related," Jason Manalac, a trader at Philippine Bank of
    The peso was also undermined by a fall in forex reserves.
The central data showed the reserves stood at $80.615 billion,
the lowest in nearly two years.
    The Indian rupee losses against the dollar extended to
nearly 1 percent for the week.
    Rising oil prices could widen India’s current account
deficit, lower the government’s excise duty and spur market
concerns over the nation’s inflation outlook, Scotiabank said in
a report.
    India is the second-largest crude oil consumer in Asia after
    The South Korean won's fell more than quarter of
a percent, after a strong rhetoric by the U.S. President Donald
Trump in Seoul on Wednesday.
    Trump issued a stark warning to North Korean leader Kim Jong
Un on Wednesday, telling him that the nuclear weapons he is
developing "are not making you safer, they are putting your
regime in grave danger".
    In the near-term, the dollar will be positive against Asian
currencies, some analysts said.
    Khoon Goh, head of Asia Research at ANZ, said increased
expectations of Federal Reserve rate hikes in 2018 and the
possibility of the passage of tax reforms by December, should be
supportive for the dollar.  
    "We are looking for Asian currencies to weaken by the end of
the year,"  
    The following table shows rates for Asian currencies against
the dollar at 0717 GMT.
 CURRENCIES VS U.S.                             
  Change on the day                             
   at   0717 GMT                      
  Currency           Latest  Previou    Pct Move
                        bid    s day  
  Japan yen          113.84      114       +0.14
  Sing dlr           1.3635   1.3638       +0.02
  Taiwan dlr         30.187   30.170       -0.06
  Korean won         1116     1111.9       -0.33
  Baht               33.120    33.15       +0.09
  Peso               51.350    51.33       -0.04
  Rupiah             13525     13512       -0.10
  Rupee              65.06     65.03       -0.05
  Ringgit            4.227    4.2285       +0.04
  Yuan               6.636    6.6395       +0.05
  Change so far in                              
  Currency           Latest  End        Pct Move
                     bid     2016     
  Japan yen          113.84   117.07       +2.84
  Sing dlr           1.3635   1.4490       +6.27
  Taiwan dlr         30.187   32.279       +6.93
  Korean won         1116    1207.70       +8.26
  Baht               33.120    35.80       +8.09
  Peso               51.350    49.72       -3.17
  Rupiah             13525     13470       -0.41
  Rupee              65.060    67.92       +4.40
  Ringgit            4.227    4.4845       +6.09
  Yuan               6.636    6.9467       +4.68
 (Reporting by Patturaja Murugaboopathy in Bengaluru)
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