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EM ASIA FX-Asian units muted with investors numb to Sino-U.S. "optimism"

Published 11/22/2019, 01:22 PM
Updated 11/22/2019, 01:24 PM
EM ASIA FX-Asian units muted with investors numb to Sino-U.S. "optimism"
USD/SGD
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USD/MYR
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* "Hope is not a strategy"- Analyst
* S. Korean won set to be worst weekly performer
* Most currencies set for weekly losses

(Adds text, updates prices)
By Ambar Warrick
Nov 22 (Reuters) - Emerging Asian currencies kept to tight
ranges on Friday as markets sought concrete evidence of headway
in Sino-U.S. trade negotiations for a "phase-1" deal having
become numbed to recent positive headlines.
Investors barely reacted to officials saying China was
"striving" to reach an interim deal, or reports that it would
would invite U.S. trade negotiators for a new round of talks.
"Expression of optimism does not constitute evidence of
progress as the old saying goes - hope is not a strategy," said
Mizuho Singapore's Zhu Huani in a note to clients.
Most regional currencies were set for weekly losses due to
the uncertainty over prospects for a trade deal, with reports
that U.S. Donald Trump would sign a bill to support Hong Kong
protesters raising concerns of a negative impact on trade talks
with Beijing.
The South Korean won KRW=KFTC was set to be the worst
weekly performer with a dip of nearly 1% to the dollar. The
currency was likely to mark its worst week since late-September.
The currency is particularly sensitive to trade headlines
due to South Korea's dependence on electronic exports, and had
come under further pressure from reports of U.S. troop
withdrawals from the country. The Indonesian rupiah IDR=ID was the largest loser for the
day, down about 0.11 percent to the dollar. The Indonesian
central bank held its benchmark rate on Thursday, as widely
expected, while also lowering cash reserve requirements for
local banks to boost liquidity in the country. The Singapore dollar SGD= , while slightly stronger on the
day, was set to weaken for a third straight week.
On the other hand, the Taiwan dollar TWD=TP was among the
few outliers set to gain for the week. The currency took some
support from a smaller-than-expected drop in export orders in
October, data had shown on Monday, pointing to signs of some
recovery in global demand for electronics.
The Thai baht THB=TH and Indian rupee INR=IN were also
set to mark small gains for the week.

ASIA FOREX POSITIONING
Sentiment towards most emerging Asian currencies darkened
over the past two weeks, a Reuters poll showed.
Long positions on the Chinese yuan CNY=CFXS were scaled
back, while short bets rose on the Indian rupee and Malaysian
ringgit MYR= .
On the other hand, bullish bets on the Singapore dollar
SGD= rose to their strongest level since Feb. 2018, as data
released on Thursday showed the export-reliant economy grew 0.5%
in the third-quarter from a year ago, beating the government's
advance estimate and in line with a Reuters poll. The following table shows rates for Asian currencies against
the dollar on Friday.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0453 GMT
Currency Latest bid Previous day Pct Move
Japan yen 108.620 108.63 +0.01
Sing dlr 1.362 1.3629 +0.04
Taiwan dlr 30.502 30.524 +0.07
Korean won 1177.600 1178.1 +0.04
Baht 30.200 30.18 -0.07
Peso 50.780 50.82 +0.08
Rupiah 14095.000 14080 -0.11
Rupee 71.738 71.76 +0.03
Ringgit 4.166 4.168 +0.05
Yuan 7.031 7.0287 -0.04

Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 108.620 109.56 +0.87
Sing dlr 1.362 1.3627 +0.02
Taiwan dlr 30.502 30.733 +0.76
Korean won 1177.600 1115.70 -5.26
Baht 30.200 32.55 +7.78
Peso 50.780 52.47 +3.33
Rupiah 14095.000 14375 +1.99
Rupee 71.738 69.77 -2.74
Ringgit 4.166 4.1300 -0.86
Yuan 7.031 6.8730 -2.25


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