* Thai baht weakens ahead of central bank decision
* Indonesian rupiah snaps sixth straight session of gains
* Chinese yuan lower ahead of G20 meet
(Adds text, updates prices)
By Ambar Warrick
June 26 (Reuters) - Asian currencies fell on Wednesday, with
the Thai baht and Indonesian rupiah snapping several sessions of
gains after the U.S. Federal Reserve cooled market expectations
for aggressive policy easing in July.
Traders scaled back their bets for a 50-basis point cut by
the U.S. central bank next month following cautious comments
from St. Louis Fed chief James Bullard on Tuesday.
Fed Chair Jerome Powell also said on Tuesday the bank was
"grappling" with whether current risks to the economy warranted
a rate cut. Regional markets have enjoyed strong inflows over the past
few sessions on the prospects of an imminent Fed easing.
As such, regional currencies weakened, having posted
substantial gains in recent sessions. The Indonesian and Thai
currencies softened the most among Asian units over the day.
The Thai baht THB=TH snapped five straight sessions of
gains and weakened 0.42% to the dollar, having scaled to its
strongest level in more than six years on Tuesday.
Markets were awaiting a rate decision from the Thai central
bank later in the day, although the bank is widely expected to
stand pat, according to a Reuters poll. The Bank of Thailand is regarded as the least dovish among
its regional peers, and would likely ease policy gradually, if
at all, as economic strength stays relatively strong in
Thailand.
The baht has seen strong inflows on that basis, and has
taken up the role of a regional haven of sorts.
"The case for a rate cut will increase should there be signs
that political instability is negatively affecting economic
policymaking, which induces downside risks to growth," Chang Wei
Liang, forex strategist at Mizuho Bank said in a note.
The Indonesian rupiah IDR=ID snapped six straight sessions
of gains and softened 0.32% to the dollar. The currency had last
week touched its strongest level in nearly two months.
Indonesia's central bank has room to cut interest rates, the
country's finance minister said on Tuesday, adding it is still
aiming for 5.1% - 5.2% GDP growth this year. A recent spike in oil prices, driven by U.S.-Iran tensions,
may also weigh on the rupiah in the near-term, given the
archipelago's reliance on crude oil imports.
The Chinese yuan CNY=CFXS softened 0.16%, extending
declines into a fourth straight session. The yuan has been
easing slightly ahead of a meeting between U.S. and Chinese
leaders at a G20 summit later in the week. VS U.S. DOLLAR
Change on the day at 0441 GMT
Currency Latest bid Previous day Pct Move
Japan yen 107.480 107.17 -0.29
Sing dlr 1.356 1.3543 -0.11
Taiwan dlr 31.127 31.115 -0.04
Korean won 1158.800 1156.2 -0.22
Baht 30.860 30.73 -0.42
Peso 51.510 51.44 -0.14
Rupiah 14165.000 14120 -0.32
Rupee 69.430 69.34 -0.13
Ringgit 4.150 4.144 -0.14
Yuan 6.890 6.8786 -0.16
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 107.480 109.56 +1.94
Sing dlr 1.356 1.3627 +0.51
Taiwan dlr 31.127 30.733 -1.27
Korean won 1158.800 1115.70 -3.72
Baht 30.860 32.55 +5.48
Peso 51.510 52.47 +1.86
Rupiah 14165.000 14375 +1.48
Rupee 69.430 69.77 +0.49
Ringgit 4.150 4.1300 -0.48
Yuan 6.890 6.8730 -0.24