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EM ASIA FX-Most Asian currencies inch up as traders await c.bank decisions

Published 10/24/2019, 02:21 PM
Updated 10/24/2019, 02:24 PM
© Reuters.  EM ASIA FX-Most Asian currencies inch up as traders await c.bank decisions
USD/SGD
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USD/IDR
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USD/PHP
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* South Korea Q3 GDP slips, exports show some signs of
recovery
* Indonesia's c.bank likely to cut rates by 25 basis points
* Worst may be over for Asia export slowdown - BofA Merrill
Lynch

(Adds text, updates prices)
By Nikhil Nainan
Oct 24 (Reuters) - Most Asian currencies edged up on
Thursday ahead of central bank policy meetings and in the
absence of new signals or developments in the Sino-U.S. trade
war and the Brexit saga.
Indonesia's central bank is widely expected to cut its
benchmark rate for a fourth time since July as it seeks to spur
growth for an economy likely to slow in 2019.
The rupiah IDR= was flat ahead of the decision. The
currency has benefited this week from Indonesia's new cabinet
that many hope would push through major reforms to boost
investment and growth.
OCBC, in a note, said Bank Indonesia may supplement the rate
cut with soft rhetoric, and, if so, would "serve as reminders
that the Asian macro outlook remains weighed down, even if it
may not be dislocating lower."
The U.S.-China trade war and political uncertainty elsewhere
has dented global economic growth, and has seen central banks
adopt more policy-easing measures.
Trade-reliant economies in Asia have been especially
impacted. Economic growth in South Korea slowed more than
expected in the third quarter, though exports - the most
important driver - showed some signs of recovery. The won KRW=KFTC was among the best performing currencies
on Thursday, advancing 0.1%.
The country's central bank has left the door open to further
policy easing.
"Looser fiscal and monetary policy should help the economy
to regain some momentum in the quarters ahead," Capital
Economics said in a note.
Taiwan's dollar TWD=TP also strengthened.
For the overall region, "it seems likely that the worst of
the export slowdown is behind us, providing marginal support to
Asia FX if the data improves into next year," BofA Merrill Lynch
Global Research said in a note.
The Indian rupee INR=IN , the Singapore dollar SGD= and
Chinese yuan CNY=CFXS were flat.
The Malaysian ringgit MYR=MY gained 0.1%. The government
is working to resolve a spat with India that has resulted in
calls to boycott Malaysian palm oil, a key export product.
On Wednesday, both Malaysia and Singapore said consumer
prices in September rose more slowly than expected.
The Philippines peso PHP= weakened 0.2% to 51.080 a
dollar.

CURRENCIES VS U.S. DOLLAR
Change on the day at 0541 GMT
Currency Latest bid Previous day Pct Move
Japan yen 108.590 108.68 +0.08
Sing dlr 1.362 1.3620 +0.00
Taiwan dlr 30.565 30.611 +0.15
Korean won 1171.600 1172.4 +0.07
Baht 30.280 30.29 +0.03
Peso 51.080 51 -0.16
Rupiah 14025.000 14025 +0.00
Rupee 70.913 70.91 -0.00
Ringgit 4.183 4.186 +0.07
Yuan 7.067 7.0667 +0.00

Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 108.590 109.56 +0.89
Sing dlr 1.362 1.3627 +0.05
Taiwan dlr 30.565 30.733 +0.55
Korean won 1171.600 1115.70 -4.77
Baht 30.280 32.55 +7.50
Peso 51.080 52.47 +2.72
Rupiah 14025.000 14375 +2.50
Rupee 70.913 69.77 -1.61
Ringgit 4.183 4.1300 -1.27
Yuan 7.067 6.8730 -2.74

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