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EM ASIA FX-Most Asian units slip; S.Korean won drops the most on bleak data

Published 10/01/2019, 03:13 PM
Updated 10/01/2019, 03:20 PM
© Reuters.  EM ASIA FX-Most Asian units slip; S.Korean won drops the most on bleak data
USD/SGD
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USD/PHP
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* South Korea won drops the most after weak data
* Singapore c.bank expected to cut rates at Oct meeting
* India's current account deficit narrows in June quarter

(Adds text, updates prices)
By Shreya Mariam Job
Oct 1 (Reuters) - Most Asian currencies edged lower against
a stronger dollar on Tuesday, with the South Korean won
weakening the most after dismal inflation and exports data
stoked bets of further monetary policy easing.
The U.S. dollar rose to its highest in more than two years
versus a basket of currencies ahead of data forecast to show the
U.S. manufacturing sector returned to growth. FRX/
The dollar strength weighed on most Asian currencies in thin
trade, with markets in China closed for the rest of the week for
holidays.
The won KRW=KFTC dropped 0.3%, its biggest intraday
percentage fall in over a week, as bleak economic readings
reinforced the view that the trade-reliant economy would
continue to show weakness against the backdrop of a bruising
trade war and fears of a global slowdown.
"We think the BoK (Bank of Korea) will cut interest rates by
a further 50bp, with one cut this month and another in January
next year," research firm Capital Economics said in a note.
The Singapore dollar SGD= slid 0.2%.
The city-state's central bank is expected to ease monetary
policy at its semi-annual meeting slated to be held no later
than Oct. 14, according to a Reuters poll.
The Indonesian rupiah IDR=ID slipped marginally after data
earlier in the day showed that country's annual inflation rate
slowed in September and was within the central bank's target
range.
"With inflation contained and Bank Indonesia keen to support
growth, further monetary policy easing looks likely," ANZ
Research said.
The Indian rupee INR=IN firmed as much as 0.2%. The
country's central bank on Monday said the country's current
account deficit narrowed to 2% of gross domestic product in the
June quarter from 2.3% in the same period a year ago.
The Philippine peso PHP= declined 0.2%, snapping a
four-session winning streak.
The Philippine central bank on Monday had said that
September annual inflation was likely to settle within 0.6%-1.4%
range. Bangko Sentral ng Pilipinas had cut its 2019 inflation
forecast last week. Easing inflation has allowed the central
bank to cut its benchmark interest rate three times this year in
a bid to arrest slowing growth.

The following table shows rates for Asian currencies against
the dollar at 0600 GMT.
CURRENCIES VS U.S. DOLLAR

Change on the day at 0600 GMT
Currency Latest bid Previous day Pct Move
Japan yen 108.170 108.06 -0.10
Sing dlr 1.385 1.3818 -0.20
Taiwan dlr 31.032 31.042 +0.03
Korean won 1199.200 1196.2 -0.25
Baht 30.620 30.58 -0.13
Peso 51.900 51.8 -0.19
Rupiah 14198.000 14190 -0.06
Rupee 70.855 70.87 +0.02
Ringgit 4.191 4.185 -0.14

Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 108.170 109.56 +1.29
Sing dlr 1.385 1.3627 -1.58
Taiwan dlr 31.032 30.733 -0.96
Korean won 1199.200 1115.70 -6.96
Baht 30.620 32.55 +6.30
Peso 51.900 52.47 +1.10
Rupiah 14198.000 14375 +1.25
Rupee 70.855 69.77 -1.53
Ringgit 4.191 4.1300 -1.46
Yuan 7.148 6.8730 -3.85


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