* Bank Indonesia likely to keep key rate at 6%
* Indian rupee firms despite widening trade deficit
* Malaysia Q1 growth 4.5% y/y vs 4.3% forecast
(Adds text, updates prices)
By Niyati Shetty
May 16 (Reuters) - The Malaysian ringgit strengthened
significantly on Thursday, helped by data that showed
first-quarter economic growth was faster than expected.
Emerging Asian currencies were mixed on the day as United
States and China aim to salvage trade talks that could end their
protracted trade dispute. In addition to the ringgit, another gainer on Thursday was
the Indonesian rupiah IDR= , which firmed slightly ahead of a
central bank rate decision. It advanced 0.1% to 14,445.0 per
dollar.
The ringgit MYR= strengthened 0.4% - its biggest intraday
gain in 3-1/2-month - to 4.155 ringgit to the dollar after
Malaysia's central bank said the economy expanded 4.5% in the
first quarter. That pace was higher than the 4.3% forecast in a Reuters
poll. Growth was supported by private sector consumption and a
recovery in palm oil production.
Government data also showed Malaysia's current account
surplus widened to 16.4 billion ringgit ($3.95 billion) in the
first quarter from 10.8 billion ringgit in the previous three
months. In Jakarta, Bank Indonesia (BI) is likely to keep its main
interest rate unchanged at 6% for a sixth straight policy
meeting due to renewed pressure on the rupiah, according to a
Reuters poll.
"The recent round of tariff slinging between the U.S. and
China has sparked emerging forex weakness again, which should
keep BI on hold for now," ING said in a note.
Adding to the unlikelihood of monetary easing at this
juncture, government data on Wednesday showed that Southeast
Asia's largest economy posted its widest trade deficit in
history in April, as exports slumped. The trade deficit was $2.5 billion, compared to a median
forecast of a $500 million gap in a Reuters poll.
The Thai baht THB=TH gained 0.1%, while the Singapore
dollar SGD= and the Chinese yuan CNY=CFXS were largely flat.
The yuan CNY=CFXS was largely steady. Traders said the
news that the U.S. has hit telecoms giant Huawei with severe
sanctions did not move the currency. The Indian rupee INR=IN added 0.2% even as the country's
trade deficit widened in April from a year earlier, data
released late on Wednesday showed. following table shows rates for Asian currencies against
the dollar at 0442 GMT.
CURRENCIES VS U.S. DOLLAR
Currency Latest bid Previous day Pct Move
Japan yen 109.500 109.58 +0.07
Sing dlr 1.368 1.3681 -0.01
Taiwan dlr 31.125 31.110 -0.05
Korean won 1189.300 1188.6 -0.06
Baht 31.565 31.6 +0.11
Peso 52.325 52.266 -0.11
Rupiah 14445.000 14455 +0.07
Rupee 70.225 70.34 +0.16
Ringgit 4.155 4.173 +0.43
Yuan 6.879 6.8768 -0.02
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 109.500 109.56 +0.05
Sing dlr 1.368 1.3627 -0.41
Taiwan dlr 31.125 30.733 -1.26
Korean won 1189.300 1115.70 -6.19
Baht 31.565 32.55 +3.12
Peso 52.325 52.47 +0.28
Rupiah 14445.000 14375 -0.48
Rupee 70.225 69.77 -0.65
Ringgit 4.155 4.1300 -0.60
Yuan 6.879 6.8730 -0.08
($1 = 4.1570 ringgit)