EM ASIA FX-Malaysian ringgit firms; others lacklustre ahead of U.S. jobs data

(Adds text, updates prices)
By Patturaja Murugaboopathy
June 7 (Reuters) - The Malaysian ringgit MYR= climbed
against the dollar on Friday, thanks to higher oil prices,
however most other currencies were tepid ahead of the release of
a U.S. jobs report later in the session.
A sharp fall in the U.S. non-farm payrolls for May could
bolster the case for an early rate cut from the Federal Reserve
and thereby strengthen the regional currencies, analysts said.
"USD/Asians can be seen trading mixed but near neutral this
Friday with the attention set ahead to the payrolls data in the
US," said Jingyi Pan, a Singapore-based market strategist with
financial services firm IG.
The Malaysian ringgit rose 0.4%, leading the regional
currencies' gains against the greenback, while the Indian rupee
INR=IN also edged higher after its central bank cut its policy
rate on Thursday for the third time in 2019.
Meantime, the South Korean won KRW=KFTC , Singapore dollar
SGD= and Thai baht THB=TH edged lower.
Traders said liquidity was thin in the currency markets due
to a holiday in Indonesia, Taiwan and China.
A "little bit of flexibility" in the yuan currency is good
for the Chinese and global economies, and pressure on the yuan
caused by the China-U.S. trade war would be temporary, Bloomberg
quoted China's central bank chief Yi Gang as saying on Friday.
Overall, Asian currencies were heading for strong gains this
week, as the greenback fell on trade concerns and rising
expectations for a U.S. rate cut before year-end.
Markets have priced in slightly more than 50% probability
rates will be cut 25 basis points by the end of July and one
more cut would follow by the end of the year, according to CME
Group's FedWatch Tool.
Market participants were also keeping tabs on developments
around Washington's trade negotiations with both China and
Mexico.
U.S. President Donald Trump said on Thursday he would decide
whether to carry out his threat to hit China with tariffs on at
least $300 billion in the country's goods after a G20 meeting
late this month. Trump's announcement on China tariffs and "the chance for
potential delay in US tariffs on Mexico reduces the risk of
further escalation in trade tensions," said Saktiandi Supaat,
head of FX research at Maybank.
It helped to support sentiment and "should continue to
provide a breather for Asia-ex-Japan currencies," he said.
The following table shows rates for Asian currencies against
the dollar at 0533 GMT.
CURRENCIES VS U.S. DOLLAR
Change on the day at
0533 GMT
Currency Latest Previous Pct
bid day Move
Japan yen 108.430 108.4 -0.03
Sing dlr 1.366 1.3636 -0.19
Korean won 1180.90 1178.6 -0.19
0
Baht 31.360 31.33 -0.10
Peso 51.644 51.633 -0.02
Rupee 69.280 69.27 -0.02
Ringgit 4.155 4.173 +0.43
*Indonesia, Taiwan
and Chinese markets
were closed for
holiday
Change so far in
2019
Currency Latest End 2018 Pct
bid Move
Japan yen 108.430 109.56 +1.04
Sing dlr 1.366 1.3627 -0.26
Taiwan dlr 31.402 30.733 -2.13
Korean won 1180.90 1115.70 -5.52
0
Baht 31.360 32.55 +3.79
Peso 51.644 52.47 +1.60
Rupiah 14270.0 14375 +0.74
00
Rupee 69.280 69.77 +0.71
Ringgit 4.155 4.1300 -0.60
Yuan 6.912 6.8730 -0.56