* Most currencies trade in narrow range
* Thai baht to post its first monthly drop in three
* Won slips over 2% in July
*
(Adds text, updates prices)
By Aby Jose Koilparambil
July 31 (Reuters) - Most Asian currencies were subdued on
Wednesday as investors remained cautious ahead of a U.S. Federal
Reserve rate decision later in the day, with markets already
pricing in a 25-basis- point cut and awaiting clues on whether
there will be more.
Unlike Asian shares, regional currencies did not weaken
significantly on fresh trade war concerns following threats from
U.S. President Donald Trump to Beijing. The Fed decision has been the dominant theme for Asian
currencies for weeks. A prospective first rate cut in more than
a decade notwithstanding, markets will be all ears to the U.S.
central bank's views on global economic health.
OCBC Bank analysts said in a note that market participants
would watch for any Fed rhetoric that could shed light on
whether the expected rate cut is seen as a one-off "insurance"
move or the start of an easing cycle.
The Thai baht THB=TH , the Korean won KRW=KFTC and the
Indonesian rupiah IDR=ID all edged up around 0.1%.
The baht, the best regional performer so far this year with
about a 6% gain, is however set to post its first monthly drop
in three - a fall of about 0.3% in July.
Thai trade data for June is scheduled to be released later
in the day, and with the custom cleared exports posting a
lower-than-expected drop and imports declining by a whopping
9.4% margin, the country's current account balance is slated to
benefit. The won, which has slipped the most among the regional peers
this year with more than a 5% drop, is en route to post about a
2.3% decline in July.
Data released earlier in the day showed South Korea's June
industrial output fell 2.9% month-on-month, while retail sales
slid 1.6% during the same period. China's yuan CNY=CFXS gained about 1% despite weak factory
activity data. An official manufacturing gauge shrank for the
third straight month in July, underlining the need for more
stimulus to support an economy hit hard by the bruising trade
war with the United States. The Indian rupee INR=IN , the Malaysian ringgit MYR=MY ,
the Philippine peso PHP= and the Taiwan dollar TWD=TP were
little changed.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0508 GMT
Currency Latest bid Previous day Pct Move
Japan yen 108.540 108.59 +0.05
Sing dlr 1.369 1.3700 +0.07
Taiwan dlr 31.080 31.075 -0.02
Korean won 1180.700 1181.6 +0.08
Baht 30.770 30.81 +0.13
Peso 50.800 50.8 +0.00
Rupiah 14005.000 14015 +0.07
Rupee 68.870 68.86 -0.01
Ringgit 4.125 4.123 -0.05
Yuan 6.881 6.8845 +0.05
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 108.540 109.56 +0.94
Sing dlr 1.369 1.3627 -0.47
Taiwan dlr 31.080 30.733 -1.12
Korean won 1180.700 1115.70 -5.51
Baht 30.770 32.55 +5.78
Peso 50.800 52.47 +3.29
Rupiah 14005.000 14375 +2.64
Rupee 68.870 69.77 +1.31
Ringgit 4.125 4.1300 +0.12
Yuan 6.881 6.8730 -0.11