* Coming ECB, Fed decisions in focus
* Thai baht slips to 1-week low
* Middle East tensions push oil price up
(Adds text, updates prices)
By Aby Jose Koilparambil
July 23 (Reuters) - Most emerging Asian currencies weakened
on Tuesday against a stronger dollar as the investors
remain focused on anticipated rate cuts by European Central Bank
(ECB) and the U.S. Federal Reserve amid increasing signs of a
global economic slowdown.
Investors expect the ECB on Thursday and the Fed on July 31
to announce interest rate cuts. Tuesday's price movements were
small, given that monetary easing is not a fresh theme.
In spite of a slew of strong recent U.S. economic data, Fed
officials have sounded decidedly dovish, thanks to persisting
concerns over the U.S.-China trade tensions and weak inflation
data. All appears set for the central bank's first rate
reduction in a decade.
Last week, South Korea and Indonesia cut their benchmark
interest rates for the first time in years as Asian economies
feel additional pressure amid a slowdown in China's growth to
near 30-year lows and trade tensions. The currencies of major oil importers in the region
including India, Indonesia and Thailand have come under pressure
following Iran's seizure last week of a British tanker in the
Strait of Hormuz, which has raised global prices.
OCBC Bank analysts said in a note that continued tensions
with Iran would support crude oil prices. On Tuesday, prices
edged higher amid lingering concerns about possible supply
disruptions in the Middle East, but an overall weaker demand
outlook kept a lid on gains. The Thai baht THB=TH depreciated as much as 0.3% to a
one-week low.
The Indonesian rupiah IDR=ID and the Indian rupee INR=IN
lost up to 0.2% each, as did the Malaysian ringgit MYR=MY and
the Philippine peso PHP= .
The Singapore dollar SGD= fell 0.2% ahead of the June
inflation data on Tuesday. A Reuters poll predicted that the
city-state's headline and core inflation rates likely eased in
the month.
Data on Monday, in a sign of further strains on Asia's
trade-reliant economies in the near term, showed Taiwan export
orders contracted for an eighth straight month in June, with
global companies increasingly hesitant to make new investments
in machinery as the China-U.S. trade war wears on. The Taiwan dollar TWD=TP was little changed on Tuesday.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0426 GMT
Currency Latest bid Previous day Pct Move
Japan yen 108.060 107.86 -0.19
Sing dlr 1.363 1.3607 -0.18
Taiwan dlr 31.077 31.083 +0.02
Korean won 1178.200 1178.3 +0.01
Baht 30.910 30.84 -0.23
Peso 51.150 51.1 -0.10
Rupiah 13970.000 13940 -0.21
Rupee 69.018 68.91 -0.15
Ringgit 4.117 4.111 -0.15
Yuan 6.883 6.8817 -0.02
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 108.060 109.56 +1.39
Sing dlr 1.363 1.3627 -0.04
Taiwan dlr 31.077 30.733 -1.11
Korean won 1178.200 1115.70 -5.30
Baht 30.910 32.55 +5.31
Peso 51.150 52.47 +2.58
Rupiah 13970.000 14375 +2.90
Rupee 69.018 69.77 +1.09
Ringgit 4.117 4.1300 +0.32
Yuan 6.883 6.8730 -0.15