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EM ASIA FX-Asia currencies edge lower due to Sino-U.S. trade deal uncertainty

Published 11/19/2019, 01:42 PM
Updated 11/19/2019, 01:48 PM
EM ASIA FX-Asia currencies edge lower due to Sino-U.S. trade deal uncertainty
USD/SGD
-

* S. Korean won leads intraday losses
* Baht bucks the trend with 0.17% gain
* U.S. housing starts expected at 1330 GMT

(Adds text, updates prices)
By Ambar Warrick
Nov 19 (Reuters) - Most Asian currencies retreated on
Tuesday as uncertainty over a Sino-U.S. trade deal kept
risk-driven plays at bay, but they traded in tight ranges ahead
of U.S. Federal Reserve and European Central Bank events later
this week.
Minutes of the Federal Open Market Committee's October
meeting are due to be released on Wednesday, while markets are
also awaiting the first major speech by ECB President Christine
Lagarde on Friday.
Before that, at 1330 GMT, U.S. October housing starts data
could provide insight on consumer spending strength in the
world's largest economy. The reading is expected to have risen
from the prior month, according to a Reuters poll.
"Overall, risk-related plays will continue to be whipsawed
by alternating headlines, but in the short term, risk-off plays
may still have room to run as uncertainties persist," OCBC's
Terence Wu said in a research note.
"The lead-in for the Asian currencies is slightly negative
today, thus, expect USD/Asia to edge higher on an intraday
basis."
The Singapore dollar SGD= fell slightly, with
third-quarter GDP data expected on Thursday. A Reuters poll
expects a strong reading, thanks to a recovery in manufacturing.
Singapore's exports have suffered a sustained decline due to
ructions in global trade caused by the Sino-U.S. tariff war.
The Indonesian rupiah IDR=ID declined about 0.1% to the
dollar. The country's central bank is widely expected to leave
its benchmark interest rate unchanged on Thursday, after cutting
rates for four straight months.
Southeast Asia's largest economy swung to a trade surplus in
October, thanks to a lower-than-expected drop in exports, as
well as a decline in imports.
The South Korean won KRW=KFTC led regional losses with a
0.36% decline, while the Chinese yuan CNY=CFXS was largely
flat after a stronger-than-expected midpoint fix.
Bucking the trend, the Thai baht THB=TH rose about 0.17%,
despite the country recording slower-than-expected third quarter
economic growth on Monday.
The strength of the baht is a concern, and the
export-reliant economy is expected to lag the central bank's
growth forecast for this year, the Bank of Thailand's governor
said on Monday. The currency is the best performer among its peers this
year, having gained more than 7.8% so far.

The following table shows rates for Asian currencies against
the dollar on Tuesday.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0512 GMT
Currency Latest bid Previous day Pct Move
Japan yen 108.590 108.66 +0.06
Sing dlr 1.361 1.3603 -0.04
Taiwan dlr 30.507 30.501 -0.02
Korean won 1168.600 1164.5 -0.35
Baht 30.180 30.23 +0.17
Peso 50.800 50.81 +0.02
Rupiah 14090.000 14070 -0.14
Rupee 71.940 71.84 -0.14
Ringgit 4.158 4.154 -0.10
Yuan 7.026 7.0255 -0.01

Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 108.590 109.56 +0.89
Sing dlr 1.361 1.3627 +0.14
Taiwan dlr 30.507 30.733 +0.74
Korean won 1168.600 1115.70 -4.53
Baht 30.180 32.55 +7.85
Peso 50.800 52.47 +3.29
Rupiah 14090.000 14375 +2.02
Rupee 71.940 69.77 -3.02
Ringgit 4.158 4.1300 -0.67
Yuan 7.026 6.8730 -2.18

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