November 16, 2017 / 6:03 AM / 4 months ago

EM ASIA FX-Most currencies slip as dollar firms, won and peso gain

 (Adds text, updates prices)
    By Aditya Soni
    Nov 16 (Reuters) - Most Asian currencies weakened on
Thursday as the U.S. dollar firmed, boosted by solid U.S. data
though its gains were capped by doubts over the prospects for
U.S. tax reform.
    Data out on Wednesday showed that U.S. underlying consumer
prices rose in October, supporting the idea that a recent
disinflationary trend that had worried the Federal Reserve had
ended. There was also an unexpected rise in retail sales last
    "Taken together these data (inflation and retail sales)
suggest there is little to sway the U.S. Fed from a December
hike and further hikes across the course of 2018. That's part of
the reason the US dollar – which fell to around 93.40 in DXY
terms before recovering to 93.77 – found a bid and rallied,"
said Greg McKenna, chief market strategist at CFD and FX
provider AxiTrader.
    But dollar strength was limited by uncertainity over a
Senate Republican tax plan that drew fire from two Republican
lawmakers on Wednesday in what could be a sign of trouble for
the sweeping measure.
    The Chinese yuan led the losses among the
regional currencies as it weakened more than 25 basis points.
    The People's Bank of China  will inject 330 billion yuan
($49.85 billion) into money markets on Thursday, traders said.

    The yuan is expected to trade in a range of 6.50-6.70 in the
weeks ahead. The PBOC’s liquidity injection was aimed at
avoiding risks arising from a selloff in bonds, Scotiabank said
in a note.   
    China's Ministry of Finance on Wednesday auctioned 32
billion yuan ($4.82 billion) of seven-year bonds at an average
yield of 3.9644 percent, traders said, below market
    The Indian rupee fell 0.2 percent, while the
Malaysian ringgit, Indonesian rupiah and
Singapore  dollar all weakened marginally.     
    Bucking the trend, the Korean won firmed 0.6
percent to its highest since Oct. 2016, in tandem with the KOSPI
stock index which rose almost half a percent. 
     Foreign currency deposits in South Korean banks at
end-October rose briskly from September, posting the
biggest-ever monthly jump as exporters lifted their dollar
holdings, the Bank of Korea said on Thursday.
     The country's exports boom continued last month, marking 12
consecutive months of growth, propelled by soaring sales of
memory chips, the trade ministry said earlier this month. 

    The Philippine peso strengthened 0.3 percent as
the country's economy clocked solid growth in the third quarter,
topping forecasts and expanding at its fastest pace in a year,
the statistics agency said on Thursday.
    Gross domestic product rose 6.9 percent in the third quarter
from a year earlier, supported by strong industrial output and
    The Philippines is benefiting from the steady rebound in
exports, which were up 12.2 percent in the nine months to
    The following table shows rates for Asian currencies against
the dollar at 0524 GMT.
  Change on the day at   0524 GMT                 
 Currency               Latest bid  Previous day      Pct Move
 Japan yen             113.030            112.86         -0.15
 Sing dlr              1.357              1.3565         -0.06
 Taiwan dlr            30.130             30.150         +0.07
 Korean won            1105.400           1112.3         +0.62
 Baht                  33.005              33.01         +0.02
 Peso                  50.890              51.04         +0.29
 Rupiah                13542.000           13533         -0.07
 Rupee                 65.343              65.21         -0.20
 Ringgit               4.178               4.173         -0.11
 Yuan                  6.638              6.6195         -0.28
 Change so far                                    
 Currency              Latest bid   End 2016          Pct Move
 Japan yen             113.030            117.07         +3.57
 Sing dlr              1.357              1.4490         +6.76
 Taiwan dlr            30.130             32.279         +7.13
 Korean won            1105.400          1207.70         +9.25
 Baht                  33.005              35.80         +8.47
 Peso                  50.890              49.72         -2.30
 Rupiah                13542.000           13470         -0.53
 Rupee                 65.343              67.92         +3.94
 Ringgit               4.178              4.4845         +7.35
 Yuan                  6.638              6.9467         +4.65

 (Reporting by Aditya Soni in Bengaluru; Editing by Eric Meijer)
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