October 25, 2019 / 6:13 AM / 3 months ago

EM ASIA FX-Most Asian FX inches up as clarity awaited on Brexit, other risks

    * South Korea's won set for 4th week of gains
    * Rupiah likely to post weekly gain on cabinet boost 
    * Singapore industrial production beats expectations

 (Adds text, updates prices)
    By Nikhil Nainan
    Oct 25 (Reuters) - Most Asian currencies managed minor gains
against the dollar on Friday, but investors refrained from big
bets while awaiting developments in the Brexit drama and
Sino-U.S. trade talks as well as next week's Federal Reserve
    Economic data from many nations in all corners of the world
have signalled slowing global growth, and the Federal Reserve is
expected to cut rates again next week. 
    Sentiment towards most Asian currencies has improved in the
past two weeks, a Reuters poll showed, with many regional
currencies set to post weekly gains against the dollar. But much
of the improvement is rooted in belief there will be at least a
partial resolution of the Sino-U.S. trade war.
    The yuan was little changed on Friday, but on
track for a third week of gains.
    The Korean won was weaker on Friday but is set to
strengthen 0.6% against the dollar over the week - running its
streak of winning weeks to four.
    Data on Thursday showed growth slowed more than expected in
the third quarter, though exports - the most important driver -
showed some signs of recovery.
    Singapore industrial production in September beat
expectations, rising for the first time in five months. The
local dollar was flat.
    The rupiah eked out gains against the dollar, a day
after Indonesia's central bank cut its benchmark rate
 by 25 basis points. It was the fourth straight cut
since July.
    The currency has strengthened 0.7% this week, more than
erasing losses from last week, as investors hope Indonesia's new
cabinet will be able to push ahead major reforms. 
    Some analysts see only one more cut in the near term , with
HSBC saying Bank Indonesia should maintain a prudent monetary
policy given the "fickle nature of portfolio flows."
    BofA Merrill Lynch, in a note, said "monetary policy
transmission remains a problem, despite the central bank
continuing to describe the pass-through as 'effective'."
    The Thai baht strengthened 0.2%, the most in the
 Change on the day at 0509 GMT                    
 Currency               Latest bid  Previous day  Pct Move
 Japan yen              108.640     108.61        -0.03
 Sing dlr               1.364       1.3633        +0.00
 Taiwan dlr             30.573      30.586        +0.04
 Korean won             1174.600    1172.9        -0.14
 Baht                   30.210      30.27         +0.20
 Peso                   51.280      51.29         +0.02
 Rupiah                 14045.000   14054         +0.06
 Rupee                  70.990      71.01         +0.03
 Ringgit                4.186       4.183         -0.07
 Yuan                   7.072       7.0695        -0.04
 Change so far in 2019                            
 Currency               Latest bid  End 2018      Pct Move
 Japan yen              108.640     109.56        +0.85
 Sing dlr               1.364       1.3627        -0.06
 Taiwan dlr             30.573      30.733        +0.52
 Korean won             1174.600    1115.70       -5.01
 Baht                   30.210      32.55         +7.75
 Peso                   51.280      52.47         +2.32
 Rupiah                 14045.000   14375         +2.35
 Rupee                  70.990      69.77         -1.72
 Ringgit                4.186       4.1300        -1.34
 Yuan                   7.072       6.8730        -2.82
 (Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by
Richard Borsuk)
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