October 30, 2017 / 5:35 AM / 5 months ago

EM ASIA FX-Asian currencies rise as U.S. dollar slips slightly

 (Adds text, updates prices)
    By Susan Mathew
    Oct 30 (Reuters) - Emerging Asian currencies rose on Monday
as the dollar dipped slightly but hovered near three-month highs
amid uncertainty on who President Donald Trump will name as the
next Federal Reserve chair.
    "Most Asian currencies are benefiting from a softer U.S.
dollar tone, amidst an easing in U.S. Treasury yields on
Friday," Wei Liang Chang, FX strategist at Mizuho Bank.
    U.S. Treasury yields fell on Friday as Catalonia's
parliament declared independence from Spain and as reports
emerged that Trump favours Fed Governor Jerome Powell rather
than Stanford economist John Taylor, seen as wanting a faster
pace of rate hikes, to lead the U.S. central bank.
    Also coming from the U.S. on Friday were media reports that
the first indictment in the investigation of possible Russian
meddling in the 2016 U.S. presidential election was approved.

    "Concerns over indictments against Trump's campaign, as well
as reports that Trump is likely to nominate Powell to be the
next Fed Chair have dampened U.S. dollar enthusiasm for now."
Chang said.
    Trump is expected to announce his decision before he departs
for a trip to Asia on Nov. 3.
    On Tuesday and Wednesday, the Fed holds a policy meeting at
which it is expected to leave rates unchanged.

    Among regional currencies, the Taiwan dollar was up
0.3 percent, its biggest intraday gain in nearly three weeks.
    Taiwan shares were helped by a gain of over 1 percent in its
semiconductor index. Apple Inc said last week
that pre-orders for iPhone X were "off the charts".
    The South Korean won was up 0.6 percent, its
highest since Sept. 1
    South Korea's foreign ministry said Lee Do-hoon, its
representative for six-party nuclear talks, and his Chinese
counterpart, Kong Xuanyou, will meet in Beijing on Tuesday.
    They are to exchange analyses on the current situation
regarding North Korea's nuclear and missile programme and also
discuss ways to cooperate in managing the situation in a stable
    The Indonesian rupiah was up 0.2 percent, after
hitting a 16-year low on Friday. The rise came ahead of third
quarter foreign direct investment data later on Monday. 
    The Thai baht was up 0.2 percent, its biggest
one-day gain since Oct. 12, while the Indian rupee rose
as much as 0.3 percent.
    The yuan rose 0.12 percent as the government's
bond unwinding picked up.
    China's Ministry of Finance on Monday auctioned 34 billion
yuan ($5.12 billion) of special treasury bonds of 5-year tenor
at a yield of 3.9206 percent, traders said.
    Yields on Chinese 10-year treasury bonds rose to
3.895 percent on Monday, their highest level since October,
    Rising yuan yields "reflect concerns that liquidity might
stay tight as monetary policy focus returns to reining in credit
growth and buffering against a Fed rate hike in December", Chang
 Change on the day at 0449 GMT                        
 Currency                   Latest bid  Previous day  Pct Move
 Japan yen                  113.63      113.67        +0.04
 Sing dlr                   1.3648      1.3652        +0.03
 Taiwan dlr                 30.191      30.277        +0.28
 Korean won                 1124        1130.5        +0.58
 Baht                       33.240      33.29         +0.15
 Peso                       51.720      51.76         +0.08
 Rupiah                     13586       13613         +0.20
 Rupee                      64.90       65.05         +0.22
 Ringgit                    4.237       4.241         +0.09
 Yuan                       6.644       6.6515        +0.12
 Change so far in 2017                                
 Currency                   Latest bid  End 2016      Pct Move
 Japan yen                  113.63      117.07        +3.03
 Sing dlr                   1.3648      1.4490        +6.17
 Taiwan dlr                 30.191      32.279        +6.92
 Korean won                 1124        1207.70       +7.45
 Baht                       33.240      35.80         +7.70
 Peso                       51.720      49.72         -3.87
 Rupiah                     13586       13470         -0.85
 Rupee                      64.900      67.92         +4.65
 Ringgit                    4.237       4.4845        +5.84
 Yuan                       6.644       6.9467        +4.56

 (Reporting by Susan Mathew in Bengaluru; Editing by Richard
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