* Yuan set for 5th straight weekly loss
* Singapore dollar hits 5-mth low; April exports -10% y/y
* Philippine peso falters; C.bank to cut RRR
(Adds text, updates prices)
By Niyati Shetty
May 17 (Reuters) - Most emerging Asian currencies weakened
on Friday as the yuan fell through a key support level and China
appeared to cool on further trade talks with the United States.
The yuan CNY=CFXS declined as much 0.4% to 6.9099, inching
closer to the psychologically important 7 per dollar mark. The
currency hit its weakest level in nearly 5 months.
A Chinese state media social media account said the United
States is not sincere about wanting to resume trade talks with
China and has damaged the atmosphere for negotiations with its
recent moves.
Without sincerity there was no point in coming for talks and
nothing to talk about, Taoran Notes, a WeChat account run by the
Economic Daily, said in a post late on Thursday that was
re-posted by the ruling Communist Party's official People's
Daily.
The tougher tone came two days after Treasury Secretary
Steven Mnuchin said he will likely travel to Beijing soon to
continue discussions as the two sides try to salvage talks aimed
at ending their months-long trade war. "This answer is likely to weigh on the region as growth
forecasts may be revised downwards in Asia (due to the
escalating trade conflict), thus creating, with capital
outflows, negative pressure on currencies," said Chang Wei
Liang, FX strategist at Mizuho Bank.
Talks between the world's largest economies rapidly
deteriorated earlier this month after Trump hiked tariffs on
Chinese goods in the midst of negotiations and Beijing
retaliated with higher duties on U.S. products. The Korean won KRW=KFTC and the Taiwan dollar TWD=TP
each weakened 0.3%, while the Indian rupee INR=IN lost 0.2%.
Also weighing on the region's currencies, the greenback held
near a two-week high against its peers on Friday, buoyed by
strong U.S. economic data and a bounce in Treasury yields.
USD/
Meanwhile, the Singapore dollar SGD= softened as much as
0.3% to its lowest level in 5 months.
Data released earlier in the day showed the island's non-oil
domestic exports fell 10% in April from a year ago, worse than
the 6% decline predicted in a Reuters poll. The Thai baht THB=TH led declines in Asia, softening up to
0.6%. Thailand's finance minister on Thursday said the country's
economic growth in the first quarter may not look good due to
weaker exports. Official gross domestic product data for the first three
months of the year is due next week.
The Indonesian rupiah IDR= eased up to 0.2% during the
session but was largely flat by 0520 GMT after the central bank
intervened in markets again to shore up the currency, which is
poised for a fourth straight week of losses.
Bank Indonesia on Thursday kept its key interest rate
unchanged at 6.00% as expected, while the governor hinted he
wants to cut but cannot do it due to the country's wide current
account deficit and global risks. Adding to concerns, the central bank deputy governor earlier
in the day said liquidity in the banking system is "heading
toward tightness" and financing may become an issue as it looks
to support economic growth. But officials said the bank would
ensure liquidity remained ample. FALTERS AS C.BANK SLASHES RRR
The Philippine peso PHP= softened up to 0.2% on Friday,
after declining as much as 0.6% during the previous session,
after the central bank announced hefty cuts in the reserve
requirement ratio (RRR) for banks. RRR will be cut by two percentage points in three stages
between May and July, which will bring the ratio to 16%.
"Coupled with a policy rate cut last week, we believe real
rates in the Philippines have peaked and there is little impetus
for the peso to strengthen from here." Chang said in a note.
The following table shows rates for Asian currencies against
the dollar at 0520 GMT.
CURRENCIES VS U.S. DOLLAR
Currency Latest bid Previous day Pct Move
Japan yen 109.660 109.84 +0.16
Sing dlr 1.375 1.3723 -0.20
Taiwan dlr 31.272 31.165 -0.34
Korean won 1195.000 1191.5 -0.29
Baht 31.740 31.58 -0.50
Peso 52.553 52.496 -0.11
Rupiah 14440.000 14445 +0.03
Rupee 70.195 70.03 -0.24
Ringgit 4.173 4.163 -0.24
Yuan 6.909 6.8840 -0.36
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 109.660 109.56 -0.09
Sing dlr 1.375 1.3627 -0.89
Taiwan dlr 31.272 30.733 -1.72
Korean won 1195.000 1115.70 -6.64
Baht 31.740 32.55 +2.55
Peso 52.553 52.47 -0.16
Rupiah 14440.000 14375 -0.45
Rupee 70.195 69.77 -0.61
Ringgit 4.173 4.1300 -1.03
Yuan 6.909 6.8730 -0.52