September 7, 2017 / 6:06 AM / 10 months ago

EM ASIA FX-Asian currencies rise as chances of U.S. rate hike dim further

    * Ringgit at near 10-mth high
    * S. Korean won recovers after U.S. shelves talks on
terminating trade agreement

 (Adds details, Updates figures)
    By Ambar Warrick
    Sept 7 (Reuters) - Asian currencies rose on Thursday as
investors saw the resignation of U.S. Federal Reserve Vice Chair
Stanley Fischer as a sign that it will be even more cautious
about raising interest rates again, implying further weakening
in the dollar.
    "We could read into the Stanley Fischer surprise overnight,
considering that he was leaning towards interest rate
normalisation. I think the market thinks that now the chance of
interest rate normalisation may get delayed further," said
Stephen Innes, senior trader at OANDA.
    The U.S. dollar hit a multiyear low against the Canadian
dollar on Wednesday after the Bank of Canada surprised many by
raising interest rates, but rose against the yen albeit
marginallty, as worries over the Korean peninsula favoured the
popular safe-haven currency.
    "Any downside dips across Dollar-Asia will be more a
reaction to positive risk appetite levels and broad USD
gyrations, as opposed to inherent support from net portfolio
capital inflows in the short term," OCBC Bank said in a research
    Among Asian currencies, the South Korean won rose
to a near one-week high against the dollar after the White House
said it was suspending internal discussions on terminating the
U.S. trade agreement with South Korea.
    The Taiwan dollar rose to a more than three-month
high against the dollar. 
    The Taiwan dollar has been gaining steadily after former
premier Lin Chuan resigned earlier in the week because of
declining public support for President Tsai Ing-wen.

    The Chinese yuan ticked up marginally after the
central bank raised its official guidance rate for the ninth
straight session.
    "We expect the yuan to consolidate with a strengthening bias
after the recent sharp rise," Scotiabank said in a research
    The Chinese yuan will only give up some of this year's
strong gains against the dollar over the next 12 months,
provided the U.S. Federal Reserve continues to tighten policy
and gives the greenback a lift, a Reuters poll showed.

    The Malaysian ringgit surged to a fresh near 10-month
high against the dollar as investors looked forward to the
Malaysian central bank's decision on its benchmark rate later in
the day, which is widely expected to remain unchanged, according
to a Reuters poll.
    "A standout in the region has been the Malaysian ringitt. If
we consider yesterday's export numbers, they were a rocking
high, which is not a sign of a weak economy," said Stephen
    "The currency has been very stable and strong this year,
which is appealing to investors," Innes added.
    Malaysia's export growth in July rose 30.9 percent from a
year earlier on higher shipments of manufactured products and
mining goods, beating the 23.1 percent rise forecast by a
Reuters poll.
    The following table shows rates for Asian currencies against
the dollar at 0514 GMT,
 CURRENCIES VS U.S. DOLLAR                                      
   Change on the day at                                         
          0514 GMT                                     
  Currency                   Latest bid  Previous day   Pct Move
  Japan yen                  109.030           109.22      +0.17
  Sing dlr                   1.347             1.3500      +0.21
  Taiwan dlr                 30.037            30.105      +0.23
  Korean won                 1128.900          1135.4      +0.58
  Baht                       33.110             33.14      +0.09
  Peso                       51.035            51.095      +0.12
  Rupiah                     13323.000          13336      +0.10
  Rupee                      64.020             64.10      +0.12
  Ringgit                    4.214              4.237      +0.55
  Yuan                       6.523             6.5270      +0.07
  Change so far in 2017                                         
  Currency                   Latest bid  End 2016       Pct Move
  Japan yen                  109.030           117.07      +7.37
  Sing dlr                   1.347             1.4490      +7.56
  Taiwan dlr                 30.037            32.279      +7.46
  Korean won                 1128.900         1207.70      +6.98
  Baht                       33.110             35.80      +8.12
  Peso                       51.035             49.72      -2.58
  Rupiah                     13323.000          13470      +1.10
  Rupee                      64.020             67.92      +6.09
  Ringgit                    4.214             4.4845      +6.42
  Yuan                       6.523             6.9467      +6.50

 (Reporting by Ambar Warrick in Bengaluru; Editing by Kim
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