* Investors cautious before U.S. payrolls number
* Indian rupee slides ahead of federal budget unveiling
* Thai baht's 5-week winning streak likely to end
(Adds text, updates prices)
By Aditya Soni
July 5 (Reuters) - Emerging Asian currencies were subdued on
Friday as investors stayed cautious ahead of U.S. employment
data likely to help determine the Federal Reserve's path on
monetary policy.
Expectations of a July interest rate cut have risen lately
due to a raft of weak U.S. economic data, and Friday's non-farm
payrolls figures for June could cement or reduce chances of
easing.
ANZ Research said it was sceptical that the Fed would act
from one data point alone.
However, it added that "if the numbers confirm a loss of
momentum in the labour market or are extremely weak, the focus
will return immediately to the potential for a 50bps cut."
The Indian rupee INR=IN , the biggest mover in the region,
weakened the most in two weeks ahead of country's federal budget
due later in the day.
The budget, the first since Prime Minister Narendra Modi
secured a second term by a landslide, is likely to cut taxes on
business and raise spending in a bid to shore up consumption and
faltering economic growth.
The Korean won KRW=KFTC slid 0.2%, in tandem with the
local share benchmark .KS11 which dropped after Samsung
Electronics' 005930.KS second-quarter profit guidance added to
investor concerns over the country's memory chip exports.
The forecast further underlines the strain the Sino-U.S.
trade war is putting on trade-dependent South Korea.
The won was headed for a weekly decline of 1.4%, which would
be its biggest since mid-May.
The Thai baht THB=TH dipped 0.2%, putting it on track to
have a five-week winning streak snapped.
The currency has strongly outperformed its peers this year
but came under pressure this week as the Bank of Thailand (BOT)
expressed worries about the baht's strength.
Slowing economic growth and contraction in exports has also
sparked speculation that the Thai central bank could cut
interest rates.
On Wednesday, the BOT said it is not closing the door to
easing monetary policy. ON ASIAN UNITS
Investors scaled back bearish bets on most Asian currencies,
a Reuters poll showed on Thursday, with risk appetites returning
to markets after the United States and China agreed to restart
trade talks.
Bearish bets on the Chinese yuan CNY=CFXS more than
halved, while markets turned bullish on the Indian rupee and
Philippine peso PHP= . The following table shows rates for Asian currencies against
the dollar at 0430 GMT.
CURRENCIES VS U.S. DOLLAR
Currency Latest bid Previous day Pct Move
Japan yen 107.840 107.79 -0.05
Sing dlr 1.356 1.3558 -0.02
Taiwan dlr 31.111 31.102 -0.03
Korean won 1170.600 1168.6 -0.17
Baht 30.700 30.65 -0.16
Peso 51.120 51.12 +0.00
Rupiah 14143.000 14135 -0.06
Rupee 68.680 68.50 -0.27
Ringgit 4.134 4.131 -0.07
Yuan 6.877 6.8713 -0.08
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 107.840 109.56 +1.59
Sing dlr 1.356 1.3627 +0.49
Taiwan dlr 31.111 30.733 -1.22
Korean won 1170.600 1115.70 -4.69
Baht 30.700 32.55 +6.03
Peso 51.120 52.47 +2.64
Rupiah 14143.000 14375 +1.64
Rupee 68.680 69.77 +1.59
Ringgit 4.134 4.1300 -0.10
Yuan 6.877 6.8730 -0.06