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EM ASIA FX-Asian currencies dip after U.S. Senate measure on Hong Kong rights

Published 11/20/2019, 02:00 PM
Updated 11/20/2019, 02:08 PM
© Reuters.  EM ASIA FX-Asian currencies dip after U.S. Senate measure on Hong Kong rights
USD/PHP
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* Philippine peso bucks trend with 0.2% rise
* Markets take HK bill in their stride - analyst
* FOMC minutes in focus, expected later in day

(Adds text, updates prices)
By Ambar Warrick
Nov 20 (Reuters) - Most Asian currencies slipped on
Wednesday as investors digested a measure by the U.S. Senate to
protect human rights in Hong Kong and China's condemnation
against the move, while Washington warned of fresh tariffs if a
deal is not reached with Beijing.
However, most currencies did not mark large moves as usually
seen during trade ructions, indicating that many in the market
still believed an interim deal was likely.
Caution ahead of the release of minutes from the U.S.
Federal Reserve's last policy meeting also kept trading ranges
tight.
"While it has potentially complicated the U.S.-China phase-1
deal negotiations, at this stage, it doesn't look like it's in
danger of derailing it," said Khoon Goh, head of Asia research
at ANZ Banking Group (Singapore), referring to the U.S. Senate's
measure.
"Markets have taken the HK bill passage in their stride...
(they've) pretty much thoroughly priced in a successful deal, so
now they really need to see evidence that this is going to go
ahead."
The Chinese yuan CNY=CFXS inched lower against the dollar,
following a slightly weaker-than-expected midpoint fix.
China's main lending rate benchmark, which is set by banks,
fell for the third time since August following cuts in the
central bank's short- and medium-term lending rates.
The People's Bank of China has been easing lending rates in
order to shore up liquidity and spur economic growth.
The South Korean won KRW=KFTC fell about 0.2% to the
dollar, while the Indian rupee INR=IN was largely flat.
The Philippine peso PHP= was among the few outliers for
the day, rising about 0.2% after two days of sharp declines.
Recently, the International Monetary Fund upgraded the
country's 2020 growth forecast, saying the government had room
to strengthen expansionary measures. Philippine lawmakers on Monday approved a bill extending the
life of the 2019 budget up to the end of next year, allowing the
government to fund priority projects.
The Thai baht THB=TH rose slightly, touching its strongest
level against the dollar in more than two weeks.
ANZ's Goh said the baht remained attractive because of
Thailand's large current account surplus, and that it was
unlikely to weaken in the near term.


The following table shows rates for Asian currencies against
the dollar on Wednesday.
CURRENCIES VS U.S. DOLLAR

Change on the day at 0517 GMT
Currency Latest bid Previous day Pct Move
Japan yen 108.490 108.53 +0.04
Sing dlr 1.361 1.3607 -0.03
Taiwan dlr 30.469 30.509 +0.13
Korean won 1170.300 1167.6 -0.23
Baht 30.180 30.205 +0.08
Peso 50.890 50.99 +0.20
Rupiah 14095.000 14085 -0.07
Rupee 71.700 71.71 +0.01
Ringgit 4.157 4.156 -0.02
Yuan 7.031 7.0272 -0.05

Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 108.490 109.56 +0.99
Sing dlr 1.361 1.3627 +0.12
Taiwan dlr 30.469 30.733 +0.87
Korean won 1170.300 1115.70 -4.67
Baht 30.180 32.55 +7.85
Peso 50.890 52.47 +3.10
Rupiah 14095.000 14375 +1.99
Rupee 71.700 69.77 -2.69
Ringgit 4.157 4.1300 -0.65
Yuan 7.031 6.8730 -2.24

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