June 12, 2018 / 7:07 AM / 2 months ago

EM ASIA FX-Asian currencies unfazed by summit, attention moves to c.bank meetings

 (Adds text, updates prices)
    By Patturaja  Murugaboopathy 
    June 12 (Reuters) - Asian currencies moved only marginally
on Tuesday as a historic United States-North Korea summit took
place in Singapore, while investors weighed how to position
themselves for major central bank meetings later this week.
    U.S. President Donald Trump said the summit with North
Korean leader Kim Jong Un was "better than anybody could have
expected", and Kim called it "a good prelude to peace."
    Analysts said that if the summit had not gone well, that
could have hurt emerging currencies, but most had anticipated a
positive result. 
    "It seems markets have priced in some of the good results,"
said Qi Gao, FX strategist at Scotiabank.
    Saktiandi Supaat, head of FX research at Maybank in
Singapore, said in a report that "Whether the market positivity
can last beyond this week would be dependent on future
negotiations and dynamics of US-China relations."
    While most Asian currencies were flat on Tuesday, the South
Korean won inched higher.
    Scotiabank's Gao said coming monetary policy statements of
the Federal Reserve and the European Central bank will be more
important for Asian currencies.
    The Fed is expected to hike its interest rates for the
second time this year at its policy meeting on Tuesday and
Wednesday. Some analysts believe the Fed will hint at raising
rates a total of four times during 2018.
    The ECB, which meets on Thursday, could signal intentions to
start unwinding its massive bond purchasing programme.
    Chang Wei Liang, FX strategist at Mizuho Bank, said there is
a growing possibility of a policy shift from the ECB, which
could signal conclusion of its asset purchase programme. 
    Last week, the ECB's chief economist said it will debate
whether to end bond purchases later this year, a hawkish message
that hit emerging markets.
    "There is a high likelihood of FX volatility picking up in
the coming week," Mizuho's Chang said. 
    The following table shows rates for Asian currencies against
the dollar at 0621 GMT.
 CURRENCIES VS U.S. DOLLAR                                 
      Change as of  0621 GMT                               
  Currency                          Latest  Previous    Pct
                                       bid       day   Move
  Japan yen                        110.38     110.02  -0.33
  Sing dlr                         1.335      1.3347  -0.05
  Taiwan dlr                       29.866     29.821  -0.15
  Korean won                       1075.4     1075.2  -0.02
  Baht                             32.10       32.07  -0.09
  Rupee                            67.490      67.42  -0.11
  Ringgit                          3.9870     3.9860  -0.03
  Yuan                             6.403      6.4047  +0.02
        *Indonesia and Philippine                          
  markets are closed for holidays                     
  Change so far in 2018                                    
  Currency                         Latest   End 2017    Pct
                                   bid                 Move
  Japan yen                        110.380    112.67  +2.07
  Sing dlr                         1.335      1.3373  +0.14
  Taiwan dlr                       29.866     29.848  -0.06
  Korean won                       1075.40   1070.50  -0.46
  Baht                             32.100      32.58  +1.50
  Peso                             52.940      49.93  -5.69
  Rupiah                           13925.0     13565  -2.59
  Rupee                            67.490      63.87  -5.36
  Ringgit                          3.987      4.0440  +1.43
  Yuan                             6.403      6.5069  +1.62
Reporting by Patturaja Murugaboopathy in Bengaluru; Editing by
Richard Borsuk)
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