* China's central bank cuts RRR by 50 bps for all banks
* S. Korean won leads gains
* Taiwan dollar edges higher ahead of trade data
(Adds text, updates prices)
By Shriya Ramakrishnan
Sept 9 (Reuters) - Most emerging Asian currencies
strengthened against the dollar on Monday, as remarks from the
U.S. Federal Reserve chief reaffirmed expectations for another
rate cut, while the yuan eased after Beijing's latest stimulus
measures.
Fed Chairman Jerome Powell said on Friday the central bank
will continue to act "as appropriate" to sustain economic
expansion, a phrase that investors have read as signaling
further interest-rate reductions ahead. The dollar index .DXY , measured against a basket of six
major currencies eased on Friday after Powell's remarks and last
traded little changed.
The case for more stimulus from major central banks was
underlined by a soft U.S. jobs report on Friday and data on the
weekend showing an unexpected drop in Chinese exports as
policymakers look to stave off a global recession. MKTS/GLOB
Mahesh Sethuraman, Deputy Head of Global Sales Trading at
Saxo Capital Markets, said the relief for emerging currencies
may not last long as worries over a worlwide manufacturing
slowdown weigh on risk sentiment.
The South Korean won KRW=KFTC was the top performer in
region, strengthening 0.5% against the greenback to its highest
level in more than a month.
The Taiwan dollar TWD=TP edged higher ahead of the release
of trade figures which are expected to show that exports
contracted for a second straight month in August. Malaysian financial markets were closed for a public
holiday.
RRR CUT WEIGHS ON YUAN
The Chinese yuan CNY=CFXS eased 0.2%, after the country's
central bank on Friday cut the amount of cash that banks must
hold as reserves for the third time this year. The move is expected to release 900 billion yuan ($126.35
billion) in liquidity to shore up the flagging economy.
Data released over the weekend also showed China's exports
unexpectedly fell in August as shipments to the United States
slowed sharply, pointing to further weakness in the world's
second-largest economy. "At the end of the day, China cannot offset all the pain of
a slowing economy and the trade war with just rate cuts. There
is only so much room that they have to cut rates and don't
forget leverage is still a problem for China,” Sethuraman said.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0545 GMT
Currency Latest bid Previous day Pct Move
Japan yen 106.870 106.9 +0.03
Sing dlr 1.381 1.3810 +0.04
Taiwan dlr 31.226 31.257 +0.10
Korean won 1191.000 1196.9 +0.50
Baht 30.640 30.66 +0.07
Peso 51.780 51.86 +0.15
Rupiah 14062.000 14090 +0.20
Rupee 71.570 71.72 +0.21
Yuan 7.129 7.1150 -0.20
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 106.870 109.56 +2.52
Sing dlr 1.381 1.3627 -1.29
Taiwan dlr 31.226 30.733 -1.58
Korean won 1191.000 1115.70 -6.32
Baht 30.640 32.55 +6.23
Peso 51.780 52.47 +1.33
Rupiah 14062.000 14375 +2.23
Rupee 71.570 69.77 -2.52
Ringgit 4.178 4.1300 -1.15
Yuan 7.129 6.8730 -3.59