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EM ASIA FX-Most flat after Trump sparks off fresh trade war concerns

Published 12/03/2019, 02:42 PM
Updated 12/03/2019, 02:56 PM
© Reuters.  EM ASIA FX-Most flat after Trump sparks off fresh trade war concerns
USD/SGD
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(Adds text, updates prices)
By Devika Syamnath
Dec 3 (Reuters) - Most Asian currencies were unchanged on
Tuesday, as gains against a weaker dollar were offset by
concerns about the United States sparking off a trade war with
Brazil and Argentina, amid an ongoing dispute with China.
U.S. President Donald Trump on Monday said he would impose
tariffs on steel and aluminium imports from Brazil and
Argentina, taking the trade war to new pastures even as the
United States looks to sign a trade deal with China.
China's yuan CNY=CFXS weakened slightly from its previous
close of 7.0409 despite a subdued dollar .DXY hurt by
unexpected decline in U.S. construction spending. "The weaker DXY has not translated into broad gains for
Asian currencies, considering the risk-off tone in the markets
triggered by President Trump's latest tariff tantrum," Han Tan,
market analyst at FXTM said in a note.
Investors remain focussed on U.S.-China trade talks and "are
expected to hold back from making large moves in the interim,
unless signaled otherwise, amid hopes that a limited trade deal
remains a likely outcome," the FXTM note added.
Less than two weeks remain before President Trump has to
decide whether to impose an additional 15% tariff on about $156
billion worth of Chinese products.
Washington's latest tariff announcement against Brazil and
Argentina has dampened prospects for the so-called "phase one"
trade deal with Beijing, which is already on tenterhooks thanks
to U.S. legislation backing protesters in Hong Kong.

The South Korean won KRW=KFTC was set to be the worst
regional performer for the day and declined 0.3%.
Tuesday marks the sixth consecutive session of falls for the
won, which is especially sensitive to trade headlines due to
South Korea's dependence on electronic exports.
Singapore manufacturing data, which is expected later in the
day, dotted an otherwise light data calendar for the region. The
Singapore dollar SGD= traded 0.1% higher.
The Malaysian ringgit MYR= strengthened 0.2% ahead of
trade data expected on Dec. 4. The country's exports likely fell
for a third straight month in October, a Reuters poll showed,
but trade surplus is expected to expand. The following table shows rates for Asian currencies against
the dollar at 0602 GMT.

CURRENCIES VS U.S. DOLLAR

Change on the day at 0602 GMT
Currency Latest bid Previous day Pct Move
Japan yen 109.170 108.98 -0.17
Sing dlr 1.365 1.3657 +0.08
Taiwan dlr 30.495 30.509 +0.05
Korean won 1186.800 1183.1 -0.31
Baht 30.270 30.27 +0.00
Peso 51.050 51.04 -0.02
Rupiah 14120.000 14120 +0.00
Rupee 71.600 71.65 +0.07
Ringgit 4.172 4.178 +0.16
Yuan 7.043 7.0409 -0.02

Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 109.170 109.56 +0.36
Sing dlr 1.365 1.3627 -0.14
Taiwan dlr 30.495 30.733 +0.78
Korean won 1186.800 1115.70 -5.99
Baht 30.270 32.55 +7.53
Peso 51.050 52.47 +2.78
Rupiah 14120.000 14375 +1.81
Rupee 71.600 69.77 -2.56
Ringgit 4.172 4.1300 -0.99
Yuan 7.043 6.8730 -2.41


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