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EM ASIA FX-Asian currencies struggle amid fresh worries on US-China trade dispute

Published 10/30/2019, 03:04 PM
Updated 10/30/2019, 03:08 PM
© Reuters.  EM ASIA FX-Asian currencies struggle amid fresh worries on US-China trade dispute
USD/SGD
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USD/PHP
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* S Korean won marks biggest intraday pct drop in nearly 3
weeks
* Taiwanese dollar gains on expected strong GDP figures
* Focus shifts to Wednesday's Fed meeting outcome

(Adds text, updates prices)
By Aby Jose Koilparambil
Oct 30 (Reuters) - Most Asian currencies weakened on
Wednesday on worries that the sealing of a first-phase trade
deal between the United States and China could be delayed.
The optimism around a partial resolution to the festering
trade dispute faded a bit after a U.S. administration official
told Reuters that an interim agreement might not be completed in
time for signing in Chile next month as expected. The trade dispute and the chance for at least a partial
resolution continues to be a key factor in currency markets.
Asian financial markets also tread water as the focus
shifted to the U.S. Federal Reserve decision later on Wednesday.
The market has priced in 25 basis points U.S. rate cut.
"Fed is likely to maintain some degree of optionality with
regard to future policy guidance, without over-committing,"
Maybank analysts said in a note.
"It (Fed) could possibly go a step further to signal that
the mid-cycle adjustment has ended, akin to hawkish cut."
Investors will also await U.S. third-quarter GDP figures,
due on Wednesday ahead of the Fed decision. Any weakness in the
data could increase worries on global growth.
The South Korean won KRW=KFTC , which gained about 1% on
Monday and Tuesday combined, slid as much as 0.6%, its biggest
percentage intraday drop in nearly three weeks.
The Indian rupee INR=IN , which had a solid advance in the
previous session, slipped as much as 0.3% on the day.
The Indonesian rupiah IDR=ID , the Malaysian ringgit
MYR=MY and the Thai baht THB=TH weakened slightly, while the
Singapore dollar SGD= and the Philippine peso PHP= barely
moved.
The Chinese yuan CNY=CFXS inched up marginally after
trading flat in the first two sessions of the week as investors
mark time ahead of the Fed decision.
The Taiwanese dollar TWD=TP appreciated 0.13%. A Reuters
poll showed economists expect the island's third-quarter GDP
growth rate - due on Thursday -- to be 2.5%, barely changed from
April-June's pace. CURRENCIES VS U.S. DOLLAR
Change on the day at 0626 GMT
Currency Latest bid Previous day Pct Move
Japan yen 108.820 108.87 +0.05
Sing dlr 1.362 1.3621 +0.01
Taiwan dlr 30.482 30.522 +0.13
Korean won 1167.700 1163 -0.40
Baht 30.220 30.21 -0.03
Peso 51.035 51.03 -0.01
Rupiah 14038.000 14020 -0.13
Rupee 70.983 70.84 -0.20
Ringgit 4.183 4.181 -0.05
Yuan 7.062 7.0656 +0.05

Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 108.820 109.56 +0.68
Sing dlr 1.362 1.3627 +0.05
Taiwan dlr 30.482 30.733 +0.82
Korean won 1167.700 1115.70 -4.45
Baht 30.220 32.55 +7.71
Peso 51.035 52.47 +2.81
Rupiah 14038.000 14375 +2.40
Rupee 70.983 69.77 -1.71
Ringgit 4.183 4.1300 -1.27
Yuan 7.062 6.8730 -2.67

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