EM ASIA FX-Asian currencies slip as Brexit pause dents risk appetite

© Reuters. EM ASIA FX-Asian currencies slip as Brexit pause dents risk appetite

* Some Asian currencies gain against the pound
* Dollar firms, as U.S. bond prices rise
* South Korean won leads losses ahead of GDP data on
Thursday

(Adds text, updates prices)
By Nikhil Nainan
Oct 23 (Reuters) - A global shift into less risky assets
weighed on most Asian currencies on Wednesday, and propped up
the U.S. dollar, as new hurdles over Britain's departure from
the European Union kept investors on edge.
U.S. Treasury yields dropped overnight as investors bought
safe-haven debt after British lawmakers on Tuesday voted against
Prime Minister Boris Johnson's tight timetable to leave the EU,
but agreed to his Brexit plan. The latest defeat effectively makes it near to impossible
for Johnson to stick to his Oct. 31 deadline for Britain to
leave the EU with a deal.
Despite dollar strength, some Asian units gained against the
pound, which edged lower against the uncertain backdrop.
The Chinese yuan gained 0.3% against the pound GBPCNY= ,
while the peso advanced 0.2% to sterling GBPPHP=R .
Elsewhere, consumer prices in Malaysia rose at a slower pace
than expected in September, reinforcing some views that the
country's central bank may cut interest rates again this
year. "While inflation continues to be subdued, some weak signals
emerged recently from the Malaysian economy, which had otherwise
been outperforming the region," ING said in a note prior to the
data, adding that there may be a pre-emptive cut this quarter.
The ringgit MYR=MY eased 0.1% against the dollar.
Not far away, Singapore's core inflation rate rose slightly
less in September than it did the previous month, hitting a more
than three-year low.
The Singapore dollar SGD= also weakened 0.1%.
Hopes of a U.S.-China trade deal helped limit losses for the
yuan CNY=CFXS , traders said. The currency edged 0.1% lower.
CNY/
The Philippine peso PHP= moved in the other direction,
strengthening 0.1%.
ING said hefty government spending in September "should be a
boost for the economy in the second half of the year. If so, we
could imagine the BSP taking a backstep on further policy
easing."
The rupiah IDR= was flat on Wednesday, a day after it
registered strong gains on the back of reports of the country's
new cabinet that spurred hopes of reforms aimed at boosting
growth and investment. Indonesia's central bank is expected to cut interest rates
on Thursday at its policy meeting. Markets in Thailand were closed for a holiday.

SOUTH KOREA'S WON
South Korea's economy is expected to grow at a slower pace
in the third quarter than it did in the second as the
trade-reliant nation deals with a prolonged U.S.-China trade war
and a diplomatic tussle with neighbour Japan. The won KRW=KFTC was the worst performer, dropping 0.3%
against the dollar ahead of the data on Thursday.
Last week, South Korea's central bank cut its policy
interest rate KROCRT=ECI for the second time in three months
and left the door open for further easing.
The next and last policy meeting of 2019, is on Nov. 29.

CURRENCIES VS U.S. DOLLAR
Currency Latest bid Previous day Pct Move
Japan yen 108.390 108.47 +0.07
Sing dlr 1.364 1.3623 -0.09
Taiwan dlr 30.615 30.594 -0.07
Korean won 1173.700 1169.7 -0.34
Peso 51.150 51.2 +0.10
Rupiah 14040.000 14037 -0.02
Rupee 70.915 70.93 +0.02
Ringgit 4.192 4.187 -0.11
Yuan 7.083 7.0778 -0.07

Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 108.390 109.56 +1.08
Sing dlr 1.364 1.3627 -0.06
Taiwan dlr 30.615 30.733 +0.39
Korean won 1173.700 1115.70 -4.94
Baht 30.290 32.55 +7.46
Peso 51.150 52.47 +2.58
Rupiah 14040.000 14375 +2.39
Rupee 70.915 69.77 -1.61
Ringgit 4.192 4.1300 -1.47
Yuan 7.083 6.8730 -2.96