* Ringgit weakens ahead of cenbank rate decision
* Won firms as S.Korea, Japan plan talks on trade dispute
-media
* Thai baht outperformance this year out of sync with weak
economic data -ING
(Adds text, updates prices)
By Devika Syamnath
July 9 (Reuters) - Asian currencies were subdued against the
dollar on Tuesday as investors focused on U.S. Federal Reserve
Chairman Jerome Powell's testimony before Congress later this
week for clues on monetary policy.
Regional currencies weakened in the previous session after
surging U.S. jobs growth in June dampened expectations the Fed
will deliver a large interest rate cut later in July.
"Market reflux post-NFP (U.S. nonfarm payrolls) may persist
until we get more potential clarity from Fed guidance tonight,"
OCBC bank said in a note to clients.
"Overall, expect the USD to continue to flex against both
the majors and the Asians," it added.
Malaysia's ringgit MYR= was 0.1% lower ahead of a central
bank rate decision later on Tuesday. Bank Negara Malaysia is
expected to hold its benchmark rate steady to assess economic
risks and the effect of a previous rate cut. Indonesia's rupiah IDR=ID declined 0.1%. It has gained
nearly 3% since late May when it touched its weakest level in
2019, prompting the central bank to affirm its support for the
unit. South Korea's won KRW=KFTC gained 0.2% after the sharpest
losses among its regional peers in the previous session and
against the backdrop of a trade dispute with Japan.
Talks are planned for as early as this week on Japan's
tighter export curbs on key materials used by South Korean
makers of electronic chips and smartphone displays, the Yomiuri
newspaper said on Tuesday. China's yuan CNY=CFXS was unchanged ahead of its June
trade and inflation readings later this week.
'OUT OF SYNC' BAHT
The Thai baht THB=TH weakened 0.1% on the day but remained
the region's best performer this year.
"Clearly, the THB performance is out of sync with the
underlying weak economic trends," ING said in a note, adding
that domestic politics continued to overhang the economy three
months after a general election.
Domestic demand remains soft and global trade wars have
crimped exports, prompting the central bank to increasingly hint
at a policy easing. Qi Gao, Asia FX Strategist at Scotiabank, said investors are
worried about potential measures after the central bank governor
said on Monday they had sometimes taken action on excessive
moves in the baht.
The following table shows rates for Asian currencies against
the dollar at 0450 GMT.
CURRENCIES VS U.S. DOLLAR
Currency Latest bid Previous day Pct Move
Japan yen 108.720 108.71 -0.01
Sing dlr 1.360 1.3596 -0.03
Taiwan dlr 31.192 31.196 +0.01
Korean won 1180.100 1182 +0.16
Baht 30.820 30.78 -0.13
Peso 51.330 51.36 +0.06
Rupiah 14115.000 14105 -0.07
Rupee 68.795 68.66 -0.20
Ringgit 4.142 4.139 -0.06
Yuan 6.882 6.8827 +0.01
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 108.720 109.56 +0.77
Sing dlr 1.360 1.3627 +0.20
Taiwan dlr 31.192 30.733 -1.47
Korean won 1180.100 1115.70 -5.46
Baht 30.820 32.55 +5.61
Peso 51.330 52.47 +2.22
Rupiah 14115.000 14375 +1.84
Rupee 68.795 69.77 +1.42
Ringgit 4.142 4.1300 -0.28
Yuan 6.882 6.8730 -0.13