March 14, 2012 / 8:22 AM / 6 years ago

EM ASIA FX-Asia FX falls on Fed, yuan; ringgit tries to clear support

* Dollar short-covering hits ringgit
    * Won down on offshore, stock outflows, vice fin min remark
    * Sing dollar finds support at 1.2630 vs dlr

 (Adds details, updates prices)	
    By Jongwoo Cheon	
    SINGAPORE, March 14 (Reuters) - Most emerging Asian
currencies fell on Wednesday as the Federal Reserve refrained
from offering signals on more policy easing, with the Malaysian
ringgit trying to clear support, although regional units found
relief from strong stocks.	
    Expectation of yuan weakness also increased, adding to the
pressure. China's Premier Wen Jiabao said Beijing will allow the
yuan to float more freely and the People's Bank of China widens
the currency's trading band through its mid-point.	
    On Tuesday, the Fed gave few clues on the prospects for
further monetary easing but the U.S. central bank offered a
slight upgrade to its economic outlook. 	
    "Investors cut bets on Asian currencies as hopes for more
U.S. quantitative easing weakened. But the Fed is not absorbing
liquidity yet and Asia will not see outflows soon. A firm dollar
backed by a strong economy has not been bad to Asian currencies,
historically," said Jeong My-young, a currency strategist at
Samsung Futures in Seoul.	
    "Still, we may not see strong long-betting on Asia as long
as investors are worried about slowing economies such as China
and in Europe," Jeong added.	
    The concerns have prompted investors to take profits from
emerging Asian currencies, main beneficiaries of inflows from
ample liquidity bolstered by major central banks' monetary
policy easing to boost growth.	
    But data from the United States pointed to a sustained
recovery in the world's top economy, supporting emerging Asian
    U.S. retail sales posted their largest rise in five months
in February, data showed on Tuesday. 	
    Easing concerns over a slowing European economy, Germany's
ZEW economic think tank's monthly sentiment survey jumped in
March to its highest level since June 2010, confirming hopes
that Europe's largest economy has recovered from a weak patch.
    Dollar/ringgit rose above a Fibonacci resistance on
short-covering. Funds and interbank speculators rushed to buy
the pair on worries about bond outflows, dealers said.	
    It advanced to as high as 3.0495, above the 76.4 percent
Fibonacci retracement of its February slides.	
    If the pair clears the retracement at 3.0462, it may head to
3.0630, its February high and near a 55-day moving average at
    But some dealers doubted if it could rise further amid
caution over possible dollar-selling intervention by the central
    Earlier, some dealers spotted selling by agent banks of the
central bank around 3.0430.	
    Dollar/won rose on demand from offshore funds and
bids linked to foreign investors' recent stock sales.	
    The pair was more supported as South Korea's Vice Finance
Minister Shin Je-yoon said it was not appropriate to use the won
to deal with higher oil prices.	
    But local exporters such as shipbuilders took the gains as
chances to sell it on rallies, dealers said.	
    "The recent range is getting stronger with risk-on factors
offsetting a firm dollar. But downside for dollar/won would be
limited," said a foreign bank dealer in Seoul.	
    Dollar/won has moved between 1,111.8 and 1,132.4 since
    U.S. dollar/Singapore dollar rose on a weaker yuan,
but the pair found an immediate resistance at 1.2630, a cluster
of highs on the hourly charts.	
    The next resistance level is seen at 1.2654-58, the high of
March 6 and a 55-day moving average.	
    A clear break of this resistance is required to signal a
move to 1.2714, the rebound high in February.	
   Change on the day at 0750 GMT	
  Currency    Latest bid   Previous day    Pct Move
  Japan yen        83.19          82.95       -0.29
  Sing dlr        1.2617         1.2580       -0.29
  Taiwan dlr      29.508         29.528       +0.07
  Korean won     1126.15        1121.50       -0.41
  Baht             30.71          30.62       -0.31
  Peso             42.83          42.66       -0.40
  Rupiah         9190.00        9160.00       -0.33
  Rupee            49.92          49.93       +0.02
  Ringgit         3.0450         3.0350       -0.33
  Yuan            6.3345         6.3270       -0.12
  Change so far in 2012
  Currency    Latest bid  End prev year    Pct Move
  Japan yen        83.19          76.92       -7.54
  Sing dlr        1.2617         1.2969       +2.79
  Taiwan dlr      29.508         30.290       +2.65
  Korean won     1126.15        1151.80       +2.28
  Baht             30.71          31.55       +2.74
  Peso             42.83          43.84       +2.36
  Rupiah         9190.00        9060.00       -1.41
  Rupee            49.92          53.08       +6.33
  Ringgit         3.0450         3.1685       +4.06
  Yuan            6.3345         6.2940       -0.64
(Additional reporting by Ye-na Park and Lee Shin-hyung in SEOUL,
Reuters FX Analyst Krishna Kumar in SYDNEY and IFR Markets'
Catherine Tan; Editing by Jacqueline Wong)	
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