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EM ASIA FX-Most Asian currencies ease marginally, trade tensions nag

Published 06/06/2019, 01:34 PM
Updated 06/06/2019, 01:40 PM
EM ASIA FX-Most Asian currencies ease marginally, trade tensions nag

(Adds text, updates prices)
By Patturaja Murugaboopathy
June 6 (Reuters) - Most Asian currencies were marginally
easier on Thursday, as U.S. trade tensions with both China and
Mexico kept investors wary of emerging markets.
Mexican officials met with their U.S. counterparts for
negotiations on tariffs and immigration in Washington on
Wednesday, although no there were no signs of progress needed to
avert the imposition of U.S. tariffs on Mexican goods next week.
"Asia is likely more exposed to trade tension effect
compared to other EM regions," said Morgan Stanley in a note.
The dollar was down 0.16% at 108.286 yen JPY=, relinquishing
most of the gains made overnight on initial optimism towards
U.S.-Mexcio trade talks.
The Indian rupee INR=IN led the regional losers on the
day, shedding 0.2% against the dollar, as market participants
expect the Reserve Bank of India to cut its policy interest rate
later in the day.
A Reuters poll of economists conducted at the end of last
month had forecast the RBI's monetary policy committee would opt
to reduce the rate for the third time since February.
Expectations for a cut hardened after data released last Fruiday
showed India's economy grew at its slowest pace in more than
four years in the January-March quarter.
Another Reuters poll found that the rupee will fall further
over the next 12 months than previously thought, hit by slowing
growth momentum and an escalating global trade war. The Thai baht THB=TH also fell 0.16% on worries over its
slowing exports and investor aversion toward risky assets.
Thailand's shipping body said this week it had cut its 2019
export growth forecast for a second time in a month, to 1% from
3%, as global demand slows amid mounting trade protectionism.
China's yuan CNY=CFTC inched lower against a weaker dollar
on Thursday, and was set for a second losing week.
South Korea, Indonesian and Malaysian markets were closed
for local holidays.

The following table shows rates for Asian currencies against
the dollar at 0504 GMT.
CURRENCIES VS U.S. DOLLAR
Change on the day at
0504 GMT
Currency Latest Previous Pct
bid day Move
Japan yen 108.210 108.45 +0.22
Sing dlr 1.365 1.3663 +0.08
Taiwan dlr 31.370 31.390 +0.06
Baht 31.370 31.33 -0.13
Peso 51.770 51.75 -0.04
Rupee 69.370 69.26 -0.17
Yuan 6.912 6.9090 -0.05
*Indonesian,
Malaysian and South
Korean markets are
closed for holidays
Change so far in
2019
Currency Latest End 2018 Pct
bid Move
Japan yen 108.210 109.56 +1.25
Sing dlr 1.365 1.3627 -0.18
Taiwan dlr 31.370 30.733 -2.03
Korean won 1178.60 1115.70 -5.34
0
Baht 31.370 32.55 +3.76
Peso 51.770 52.47 +1.35
Rupiah 14270.0 14375 +0.74
00
Rupee 69.370 69.77 +0.58
Ringgit 4.173 4.1300 -1.03
Yuan 6.912 6.8730 -0.57

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