* S. Korea cenbank cuts rates, says "some policy room left"
* Rupiah rises ahead of cenbank rate decision
* Investors cut bearish bets on most Asian units -Reuters
poll
(Adds text, updates prices)
By Rashmi Ashok
July 18 (Reuters) - Most emerging Asian currencies rose
against the dollar on Thursday, with the Korean won leading the
gains after a surprise rate cut by the nation's central bank was
seen by traders as positive move for a stuttering economy.
The dollar index .DXY eased slightly in the wake of soft
U.S. housing market data and signs of renewed Sino-U.S. trade
tensions. "Investors are back focusing on worst-case scenarios despite
overly accommodating central bank policies," said Stephen Innes,
managing partner at Vanguard Markets Pte Ltd.
The spotlight fell on the Korean won KRW=KFTC , which added
0.4% against the dollar despite an unexpected rate cut by the
Bank of Korea, which came at least a month earlier than many
economists had predicted. A deepening trade row with Japan may
have forced BOK's hand, given the Korean economy is already
struggling to navigate the Sino-U.S. tariff standoff.
The currency did fall soon after the surprise rates
decision, but rebounded as dovish comments from BOK Governor Lee
Ju-yeol signalled policymakers' determination to revive the
trade-reliant economy, which some traders said could help
attract inflows. "After the rate cut which surprised the market, the speech
may have improved the sentiment because it confirmed the central
bank's pro-growth stance," said Gao Qi, FX strategist at
Scotiabank.
"If the rate cut can boost assets like equities and bonds,
it will attract inflows. In this scenario, it can help,
particularly if the Fed remains dovish," he added.
The Federal Reserve is widely expected to cut rates at its
month-end review as an insurance policy against rising economic
risks, including from the bruising Sino-U.S. trade war.
The Indonesian rupiah IDR=ID added 0.3%, ahead of its
central bank policy meeting due later.
The majority of analysts in a Reuters poll predicted the
Bank Indonesia (BI) is likely to begin an easing cycle with a
rate cut on Thursday. FX POSITIONING - FED EYED
A separate Reuters poll showed investors cut bearish bets on
most Asian units and went long on the rupiah for the first time
in nearly three months as expectations of a Fed rate cut
weakened prospects for the greenback. Long positions on the Thai baht THB=TH receded, according
to the poll.
Strategists at DBS Group Research say catalysts for more
baht appreciation have waned, mainly on the fading impact of
factors such as a wider current account surplus and December's
rate hike.
"Policymakers have signalled that Thailand may join the rest
of the world in easing monetary policy... and consider new
measures to encourage capital outflows," the DBS note said.
"Hence, USD/THB has scope to return above 31 towards 32
again."
The following table shows rates for Asian currencies against the
dollar at 0530 GMT.
CURRENCIES VS U.S. DOLLAR
Currency Latest bid Previous day Pct Move
Japan yen 107.700 107.94 +0.22
Sing dlr 1.359 1.3608 +0.15
Taiwan dlr 31.066 31.075 +0.03
Korean won 1176.600 1181.3 +0.40
Baht 30.860 30.91 +0.16
Peso 51.000 51.05 +0.10
Rupiah 13935.000 13975 +0.29
Rupee 68.798 68.81 +0.02
Ringgit 4.111 4.1125 +0.04
Yuan 6.878 6.8733 -0.06
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 107.700 109.56 +1.73
Sing dlr 1.359 1.3627 +0.29
Taiwan dlr 31.066 30.733 -1.07
Korean won 1176.600 1115.70 -5.18
Baht 30.860 32.55 +5.48
Peso 51.000 52.47 +2.88
Rupiah 13935.000 14375 +3.16
Rupee 68.798 69.77 +1.41
Ringgit 4.111 4.1300 +0.46
Yuan 6.878 6.8730 -0.07