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EM ASIA FX-Most Asian currencies slip ahead of trade talks; Taiwan dollar gains

Published 10/07/2019, 03:03 PM
Updated 10/07/2019, 03:10 PM
© Reuters.  EM ASIA FX-Most Asian currencies slip ahead of trade talks; Taiwan dollar gains
USD/SGD
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USD/MYR
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USD/PHP
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* Media report on US-China talks press offshore yuan
* Top-level talks open in Washington on Thursday
* Taiwan dollar rises ahead of September trade data

(Adds text, updates prices)
By Shreya Mariam Job
Oct 7 (Reuters) - Most Asian currencies edged lower on
Monday after risk appetites were dented by a media report saying
China wants the scope of this week's trade talks and any deal
with the United States to be kept narrow.
Market sentiment was dampened by a Bloomberg report stating
Chinese officials are signalling increasing reluctance to agree
to a broad trade deal pursued by President Donald Trump.
Top-level trade talks between the United States and China
are scheduled for Thursday and Friday.
"Risk of breakdown in trade talks will re-ignite fears and
pose further upward pressure on USD-AXJs (Asia ex Japan)," a
Maybank note said.
The report pulled the offshore yuan the currency most
exposed to trade tensions, 0.3% lower against the dollar.
Onshore trading in the yuan was closed due to a holiday in
China.
Among Southeast Asian currencies, the Philippine peso PHP=
declined the most, weakening 0.3%.
The Singapore dollar SGD= slipped 0.1% on weakness in the
offshore yuan, while the Malaysian ringgit MYR= skidded 0.1%.
The Indonesian rupiah IDR=ID dropped 0.2%. Data showed
that the country's foreign reserves dropped by $2.1 billion to
$124.3 billion in September, partly due to payments of offshore
public debt. TAIWAN DOLLAR
Bucking Monday's trend, the Taiwan dollar TWD=TP firmed as
much as 0.3% ahead of release of the island's September trade
data due at 0800 GMT Monday.
"We think TWD is likely to be more resilient compared to KRW
and CNH, as it benefits from trade diversion and potential
capital repatriation flows," a Barclays note said.
Many companies have been moving their manufacturing
facilities to the island amid rising tariffs imposed on Chinese
goods by the United States.
Taiwan's exports are likely to have grown 1% in September
from a year earlier, logging a second month of growth, according
to a Reuters poll. CURRENCIES VS U.S. DOLLAR
Change on the day at 0626 GMT
Currency Latest bid Previous day Pct Move
Japan yen 106.890 106.93 +0.04
Sing dlr 1.380 1.3783 -0.13
Taiwan dlr 30.893 30.973 +0.26
Korean won 1196.600 1196.8 +0.02
Baht 30.445 30.42 -0.08
Peso 51.850 51.69 -0.31
Rupiah 14155.000 14130 -0.18
Rupee 70.963 70.88 -0.12
Ringgit 4.190 4.184 -0.14

Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 106.890 109.56 +2.50
Sing dlr 1.380 1.3627 -1.26
Taiwan dlr 30.893 30.733 -0.52
Korean won 1196.600 1115.70 -6.76
Baht 30.445 32.55 +6.91
Peso 51.850 52.47 +1.20
Rupiah 14155.000 14375 +1.55
Rupee 70.963 69.77 -1.68
Ringgit 4.190 4.1300 -1.43
Yuan 7.148 6.8730 -3.85


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