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CORRECTED-EM ASIA FX-Peso pulls up from 11-month low on strong GDP
May 30, 2013 / 7:28 AM / 5 years ago

CORRECTED-EM ASIA FX-Peso pulls up from 11-month low on strong GDP

(Corrects 9th paragraph to say ringgit's Wednesday fall was the
biggest pct slide since Nov 2011, not Nov 2012)
    * Peso bounces off 11-month low set earlier on Thursday
    * Philippine Q1 GDP beats expectations, up 7.8 pct yr/yr
    * Ringgit edges up after previous day's slide

    By Masayuki Kitano
    SINGAPORE, May 30 (Reuters) - The Philippine peso pulled up
from an 11-month low on Thursday, gaining a respite from a
recent selloff after data showed first-quarter economic growth
was much stronger than expected.
    From a year earlier, the Philippine economy grew 7.8
percent, beating a 6.1 percent growth forecast in a Reuters poll
and making the Philippines the fastest growing economy in Asia
as it nudged ahead of China's growth of 7.7 percent on an annual
    The peso edged up about 0.1 percent on the day to 42.39
versus the dollar, having bounced from a low of 42.63
earlier in the session, its lowest level against the dollar
since June 2012.
    "The Philippine peso may see some appreciation pressure in
the near term after its sharp slide in the past week as dealers
were likely surprised the strong GDP print," economists for the
Bank of the Philippine Islands wrote in a research note.
    "External sentiment may weigh a bit more in 2Q2013, however
as the dollar appears to be poised for further strengthening
across most other currencies," they added.
    Even after its slight bounce on Thursday, the peso has still
fallen 2.9 percent against the dollar over the past two weeks,
as the dollar climbed on mounting speculation that the U.S.
Federal Reserve could slow the pace of its monetary stimulus
later this year.
    Such jitters have triggered a surge in U.S. bond yields and
dented the allure of riskier, higher-yielding assets, including
Philippine bonds, which have been a popular destination for
overseas investors.
    Some traders say overseas investors have trimmed their
Philippine bond holdings this week, and that such flows have
helped to weigh on the peso, which had hit a 5-year high of
40.55 earlier this year on the strength of inflows.

    The ringgit rose 0.3 percent, getting some reprieve after
sliding nearly 1.3 percent on Wednesday, its biggest one-day
percentage loss against the dollar since November 2011.  
    The ringgit had come under pressure on Wednesday as foreign
funds dumped Malaysian government securities. 
    China's yuan edged lower against the dollar in spite of a
stronger official midpoint as the market showed doubt that the
yuan has potential to appreciate further following its recent
    The yuan, however, is now the best performing emerging Asian
currency this year, with a gain of 1.7 percent versus the
dollar, having recently overtaken the Thai baht, which is now up
 1.4 percent in 2013.
  Change on the day at   0710 GMT                                      
  Currency    Latest bid   Previous day    Pct Move
  Japan yen       100.62         101.17       +0.55
  Sing dlr        1.2647         1.2660       +0.10
  Taiwan dlr      29.973         30.120       +0.49
  Korean won     1127.35        1132.90       +0.49
  Baht             30.18          30.19       +0.03
  Peso             42.39          42.44       +0.12
  Rupiah         9810.00        9810.00       +0.00
  Rupee            56.22          56.17       -0.09
  Ringgit         3.0710         3.0795       +0.28
  Yuan            6.1294         6.1267       -0.04
  Change so far in 2013                                                
  Currency    Latest bid  End prev year    Pct Move
  Japan yen       100.62          86.79      -13.74
  Sing dlr        1.2647         1.2219       -3.38
  Taiwan dlr      29.973         29.136       -2.79
  Korean won     1127.35        1070.60       -5.03
  Baht             30.18          30.61       +1.42
  Peso             42.39          41.05       -3.16
  Rupiah         9810.00        9630.00       -1.83
  Rupee            56.22          54.99       -2.19
  Ringgit         3.0710         3.0580       -0.42
  Yuan            6.1294         6.2303       +1.65
 (Additional reporting by IFR Markets' Catherine Tan in
Singapore, Karen Lema in Manila; Editing by Sanjeev Miglani)

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