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EM ASIA FX-Most Asian units weaken on Sino-U.S. friction; China stimulus eyed

Published 05/21/2020, 01:23 PM
Updated 05/21/2020, 01:30 PM
© Reuters.
USD/JPY
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USD/SGD
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* Investors eye key Chinese policy meetings; stimulus
expected
* Asian FX under pressure, USD firm as China-U.S. tensions
spike
* Japan, South Korea export data show sharp plunge

(Adds text, updates prices)
By Rashmi Ashok
May 21 (Reuters) - Most Asian currencies posted small moves
on Thursday, ahead of a key policy meeting in China, with
sentiment largely tepid as weak data and Sino-U.S. trade worries
muted any enthusiasm over the lifting of the coronavirus-induced
lockdown.
Despite overnight strength on major U.S. stock indexes,
Asian equities and currencies struggled to hold onto marginal
gains as frictions between the world's two largest economies
gained momentum.
The Chinese yuan CNY=CFXS eased 0.2% to 7.107 against a
slightly firmer U.S. dollar, while the trade-sensitive South
Korean won KRW=KFTC and Singapore dollar SGD= also weakened.
On Wednesday, the U.S. Senate passed a bill that could bar
some Chinese companies from listing on U.S. exchanges under some
circumstances unless they follow standards for U.S. audits and
regulations.
U.S. regulators also geared up to tighten rules aimed at
curbing global chip sales to blacklisted Chinese telecoms
equipment maker Huawei Technologies Ltd, two U.S. officials
said. Offering a degree of support, however, were hopes of
stimulus measures from China at two key annual policy meetings
that are slated to begin on Friday. "Plenty of stimulus expected from the two sessions, which
will be eyed by markets," Maybank analysts wrote in a note.
"Quota for special bonds issuance likely to be ramped up for
local governments after much of it has been utilized, and
special treasury bonds - tapped on only twice in history - will
be issued," they added.
Meanwhile, data showed South Korean exports for the first 20
days of May tumbled 20.3%, while Japan's exports fell the most
since the 2009 global financial crisis in April. Safe-haven demand has supported the Japanese yen JPY= this
year, but the won has been among the region's worst performers
so far, shedding over 6%.
The Indian rupee INR=IN and Malaysian ringgit MYR=MY
clocked incremental gains, while the Indonesian rupiah IDR=ID
did not trade on account of a local holiday.

The following table shows rates for Asian currencies against the
dollar at 0453 GMT.
CURRENCIES VS U.S. DOLLAR
Currency Latest bid Previous day Pct Move
Japan yen 107.580 107.51 -0.07
Sing dlr 1.415 1.4125 -0.14
Taiwan dlr 29.924 29.960 +0.12
Korean won 1231.400 1230.3 -0.09
Baht 31.840 31.82 -0.06
Peso 50.520 50.53 +0.02
Rupee 75.723 75.79 +0.09
Ringgit 4.338 4.346 +0.18
Yuan 7.105 7.0930 -0.17

Change so far in 2020
Currency Latest bid End 2019 Pct Move
Japan yen 107.580 108.61 +0.96
Sing dlr 1.415 1.3444 -4.96
Taiwan dlr 29.924 30.106 +0.61
Korean won 1231.400 1156.40 -6.09
Baht 31.840 29.91 -6.06
Peso 50.520 50.65 +0.26
Rupee 75.723 71.38 -5.73
Ringgit 4.338 4.0890 -5.74
Yuan 7.105 6.9632 -1.99

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