October 31, 2018 / 6:40 AM / 3 months ago

EM ASIA FX-Indian rupee slides on reports c.bank gov may resign

    * Philippine peso sole gainer for October
    * Yuan set for seventh straight monthly loss
    * Peso, baht rise tracking local equities

 (Adds details on rupee, yuan, updates numbers)
    By Ambar Warrick
    Oct 31 (Reuters) - The Indian rupee tumbled on Wednesday on
reports that the central bank governor may consider resigning
amid growing policy disagreements with the government.
    Most other Asian units edged higher, but were on track to
end October well in the red as global investors continued to
dump riskier assets.
    CNBC TV 18 reported that the governor of the Reserve Bank of
India (RBI) was considering stepping down due to differences
with the government. The Economic Times reported that the Indian
government had invoked never-before-used powers to allow it to
issue directions to the RBI.
    The rupee fell as much as 0.62 percent to 74.130
per dollar, its weakest in two weeks. Non deliverable forwards
for the rupee had also declined before the currency
started trade. Three-month forwards stood at 74.962 by 0614 GMT.
    The currency later stood at 74.055, and was slated to lose
about 2.1 percent in October.
    In the early afternoon, India's finance ministry said it
would issue a statement shortly.
    Mahesh Singhi, founder and managing director of Singhi
Advisors, said that while the rupee has weakened substantially
this year due to higher oil prices and geopolitical uncertainty
it would probably recover somewhat to the 70-72 level by next
year, in the run-up to the country's general elections. 
    Meanwhile, the Thai baht and the Philippine peso
 edged up about 0.1 percent against the dollar each. 
    Qi Gao, an FX strategist at Scotiabank, attributed the gains
to rising stock markets. Thai shares gained about 0.8
percent, while Philippine shares were about 1 percent
higher. 
    Regional equities gained in line with an overnight rebound
in Wall Street. The U.S. dollar also rose following a
rise in U.S. consumer confidence.
    The peso was the only currency set for a monthly gain. It
was on track to rise about 0.8 percent in October.
    Meanwhile, the Japanese yen edged lower after the
Bank of Japan signalled it was a long way off from exiting
crisis-era stimulus, as widely expected.
    
    CHINESE YUAN 
    The Chinese yuan was largely flat at 6.967 to the
dollar. Concerns over China's trade war with the United States
has weighed heavily on the yuan this year. 
    Cooling domestic growth and demand has also raised questions
about sustained growth in the world's second largest economy.
China's manufacturing sector in October expanded at its weakest
pace in over two years.
    The currency was set for a loss of about 1.4 percent
expected in October, its seventh consecutive monthly retreat and
its longest such losing streak on record.
    The following table shows rates for Asian currencies against
the dollar at 0614 GMT.

 CURRENCIES  VS U.S. DOLLAR                             
 Change on the day at   0614 GMT                        
 Currency                     Latest bid  Previous day  Pct Move
 Japan yen                    113.230     113.08        -0.13
 Sing dlr                     1.386       1.3847        -0.08
 Taiwan dlr                   30.945      30.985        +0.13
 Korean won                   1138.100    1139.2        +0.10
 Baht                         33.283      33.3          +0.05
 Peso                         53.515      53.59         +0.14
 Rupiah                       15210.000   15222         +0.08
 Rupee                        74.055      73.68         -0.51
 Ringgit                      4.181       4.18          -0.02
 Yuan                         6.967       6.9675        +0.00
                                                        
 Change so far in 2018                                  
 Currency                     Latest bid  End 2017      Pct Move
 Japan yen                    113.230     112.67        -0.49
 Sing dlr                     1.386       1.3373        -3.50
 Taiwan dlr                   30.945      29.848        -3.54
 Korean won                   1138.100    1070.50       -5.94
 Baht                         33.283      32.58         -2.11
 Peso                         53.515      49.93         -6.70
 Rupiah                       15210.000   13565         -10.82
 Rupee                        74.055      63.87         -13.75
 Ringgit                      4.181       4.0440        -3.28
 Yuan                         6.967       6.5069        -6.61
 

 (Reporting by Ambar Warrick in Bengaluru)
  
 
 
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