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EM ASIA FX-Most currencies weaken as solid U.S. growth bolsters dollar

Published 12/23/2019, 02:22 PM
Updated 12/23/2019, 02:24 PM
© Reuters.  EM ASIA FX-Most currencies weaken as solid U.S. growth bolsters dollar
USD/SGD
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USD/THB
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DXY
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* Thai c.bank open to further easing - governor
* S.Korea Dec 1-20 exports fall
* Singapore core inflation steady

(Adds text, updates prices)
By Shreya Mariam Job
Dec 23 (Reuters) - Most Asian currencies inched lower on
Monday, as upbeat U.S. economic data supported the greenback
while soft Asia trade figures knocked regional sentiment at the
start of a holiday week.
U.S. data on Friday showed that the world's largest economy
had maintained a moderate pace of growth despite the volatility
brought about by tensions with China. The dollar index .DXY was at 97.668 by 0539 GMT, flat on
the day after rising about 0.3% on Friday.
The Thai baht THB= , which is the best performing currency
in the region so far this year, slipped over 0.2% on the day.
Thailand's November exports dropped 7.4%, worse than a 4.5%
fall forecast in a Reuters poll. The governor of the Bank of Thailand signalled on Monday
that there would likely be further monetary policy easing if the
economic situation turns out worse than expected. The baht has shown resilience even as trade tensions bruised
financial markets through the year. The strength of the currency
has become a cause of concern for policymakers.
"In the case of the THB, it had been seen as a non-China
exports hedge, given tighter linkages with Japanese
manufacturers relative to other exporters in the region,"
Vishnu Varathan, senior economist at Mizuho Bank, said in a note
last week.
Meanwhile, the South Korean won KRW=KFTC weakened after
data showed that the trade-reliant economy's exports had fallen
again in the first 20 days of December. However, hopes that a
year-long run of declines may be nearing an end capped the fall.
Exports by Asia's fourth-largest economy during December
1-20 slid 2.0% in value from the same period a year earlier, the
smallest decline in a year.
The Singapore dollar SGD= also slipped marginally. The
city-state's core inflation rate, which is the Monetary
Authority of Singapore's preferred price gauge for setting
monetary policy, was unchanged in November. However, a Mizuho Bank note said: "Unless 'tail risks'
unleash adverse shocks – likely transmitted via financial
markets – the MAS will not resort to more aggressive easing
measures."

CURRENCIES VS U.S. DOLLAR

Change on the day at 0548 GMT
Currency Latest bid Previous day Pct Move
Japan yen 109.420 109.44 +0.02
Sing dlr 1.356 1.3548 -0.11
Taiwan dlr 30.184 30.210 +0.09
Korean won 1161.800 1160.6 -0.10
Baht 30.220 30.15 -0.23
Peso 50.830 50.76 -0.14
Rupiah 13982.000 13970 -0.09
Rupee 71.150 71.12 -0.04
Ringgit 4.142 4.138 -0.10
Yuan 7.012 7.0065 -0.07

Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 109.420 109.56 +0.13
Sing dlr 1.356 1.3627 +0.47
Taiwan dlr 30.184 30.733 +1.82
Korean won 1161.800 1115.70 -3.97
Baht 30.220 32.55 +7.71
Peso 50.830 52.47 +3.23
Rupiah 13982.000 14375 +2.81
Rupee 71.150 69.77 -1.94
Ringgit 4.142 4.1300 -0.29
Yuan 7.012 6.8730 -1.98


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