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EM ASIA FX-Most Asian FX inches up as clarity awaited on Brexit, other risks

Published 10/25/2019, 02:10 PM
Updated 10/25/2019, 02:16 PM
© Reuters.  EM ASIA FX-Most Asian FX inches up as clarity awaited on Brexit, other risks
USD/SGD
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USD/IDR
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* South Korea's won set for 4th week of gains
* Rupiah likely to post weekly gain on cabinet boost
* Singapore industrial production beats expectations

(Adds text, updates prices)
By Nikhil Nainan
Oct 25 (Reuters) - Most Asian currencies managed minor gains
against the dollar on Friday, but investors refrained from big
bets while awaiting developments in the Brexit drama and
Sino-U.S. trade talks as well as next week's Federal Reserve
meeting.
Economic data from many nations in all corners of the world
have signalled slowing global growth, and the Federal Reserve is
expected to cut rates again next week.
Sentiment towards most Asian currencies has improved in the
past two weeks, a Reuters poll showed, with many regional
currencies set to post weekly gains against the dollar. But much
of the improvement is rooted in belief there will be at least a
partial resolution of the Sino-U.S. trade war. The yuan CNY=CFXS was little changed on Friday, but on
track for a third week of gains.
The Korean won KRW=KFTC was weaker on Friday but is set to
strengthen 0.6% against the dollar over the week - running its
streak of winning weeks to four.
Data on Thursday showed growth slowed more than expected in
the third quarter, though exports - the most important driver -
showed some signs of recovery. Singapore industrial production in September beat
expectations, rising for the first time in five months. The
local dollar SGD= was flat. The rupiah IDR= eked out gains against the dollar, a day
after Indonesia's central bank cut its benchmark rate
IDCBRR=ECI= by 25 basis points. It was the fourth straight cut
since July. The currency has strengthened 0.7% this week, more than
erasing losses from last week, as investors hope Indonesia's new
cabinet will be able to push ahead major reforms.
Some analysts see only one more cut in the near term , with
HSBC saying Bank Indonesia should maintain a prudent monetary
policy given the "fickle nature of portfolio flows."
BofA Merrill Lynch, in a note, said "monetary policy
transmission remains a problem, despite the central bank
continuing to describe the pass-through as 'effective'."
The Thai baht THB=TH strengthened 0.2%, the most in the
region.

CURRENCIES VS U.S. DOLLAR
Change on the day at 0509 GMT
Currency Latest bid Previous day Pct Move
Japan yen 108.640 108.61 -0.03
Sing dlr 1.364 1.3633 +0.00
Taiwan dlr 30.573 30.586 +0.04
Korean won 1174.600 1172.9 -0.14
Baht 30.210 30.27 +0.20
Peso 51.280 51.29 +0.02
Rupiah 14045.000 14054 +0.06
Rupee 70.990 71.01 +0.03
Ringgit 4.186 4.183 -0.07
Yuan 7.072 7.0695 -0.04

Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 108.640 109.56 +0.85
Sing dlr 1.364 1.3627 -0.06
Taiwan dlr 30.573 30.733 +0.52
Korean won 1174.600 1115.70 -5.01
Baht 30.210 32.55 +7.75
Peso 51.280 52.47 +2.32
Rupiah 14045.000 14375 +2.35
Rupee 70.990 69.77 -1.72
Ringgit 4.186 4.1300 -1.34
Yuan 7.072 6.8730 -2.82

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