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EM ASIA FX-S.Korean won, Chinese yuan lead losses on trade deal delay

Published 11/07/2019, 03:18 PM
Updated 11/07/2019, 03:24 PM
© Reuters.  EM ASIA FX-S.Korean won, Chinese yuan lead losses on trade deal delay
USD/PHP
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* Won falls up to 0.5%, still set for 6th weekly gain
* Chinese currency sees worst day in more than a week
* Philippine peso gains on strong Q3 GDP data

(Adds text, updates prices)
By Aby Jose Koilparambil
Nov 7 (Reuters) - Most Asian currencies eased on Thursday,
with the Korean won and the Chinese yuan leading the declines,
as risk appetite took a hit after Reuters reported of a delay in
sealing a preliminary Sino-U.S. trade deal.
A meeting between U.S. President Donald Trump and Chinese
President Xi Jinping to sign the long-awaited interim deal could
be delayed until December as discussions continue over terms and
venue, a senior official of the Trump administration told
Reuters. Risk assets in Asia have appreciated of late on positive
trade headlines even as the search for an alternate venue to
host the Sino-U.S. meeting was on after a planned mid-November
summit of Asia-Pacific leaders in Chile got cancelled due to
violent protests there.
The trade dispute between the world's top two economies has
roiled global financial markets for more than a year now, with
any developments, even minute in nature, significantly impacting
diverse asset classes.
"Until we get more clarity on the venue and the United
States' position on China's tariff request, look for Emerging
Asian currencies... to give back some of the gains chalked in
October," DBS Bank analysts said in a note.
The Korean won KRW=KFTC , which appreciated about 2.7% in
October and is set for a sixth consecutive weekly gain, lost
ground on the day, weakening up to 0.5%.
The yuan CNY=CFXS retreated further from a peak hit
earlier this week, shedding as much as 0.3% in its biggest
intraday percentage drop in more than a week.
The Malaysian ringgit MYR=MY and the Indonesian rupiah
IDR=ID depreciated as much as 0.2% each.
The Thai baht THB=TH inched lower, extending losses after
the central bank on Wednesday cut rates for a second time this
year in its attempt to shore up inflation.

PHILIPPINE PESO
The Philippine peso PHP= gained as much as 0.1% after data
showed the economy grew faster than expected in the third
quarter, fuelled by buoyant government spending and domestic
demand.
Gross domestic product grew 6.2% from a year earlier,
exceeding the 6.0% median forecast in a Reuters poll, and the
prior quarter's 5.5% growth, thus effectively lowering the
chances of more policy easing this year.
"This (Q3 economic growth) should enable the Bangko Sentral
ng Pilipinas to pause on further monetary easing and assess the
impact of previous rate and reserve requirement ratio cuts," ANZ
analysts said in a research note.

BULLISH ON YUAN
Market participants turned bullish on the yuan after nearly
seven months and increased long positions on most emerging Asian
currencies over the past two weeks, a Reuters poll showed, as
prospects of an interim Sino-U.S. trade deal whetted risk
appetite. VS U.S. DOLLAR

Change on the day at 0623 GMT
Currency Latest bid Previous day Pct Move
Japan yen 108.730 108.96 +0.21
Sing dlr 1.360 1.3599 +0.01
Taiwan dlr 30.404 30.400 -0.01
Korean won 1159.800 1156.9 -0.25
Baht 30.310 30.29 -0.07
Peso 50.540 50.61 +0.14
Rupiah 14030.000 14010 -0.14
Rupee 71.003 70.98 -0.03
Ringgit 4.143 4.135 -0.19
Yuan 7.016 6.9978 -0.26

Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 108.730 109.56 +0.76
Sing dlr 1.360 1.3627 +0.22
Taiwan dlr 30.404 30.733 +1.08
Korean won 1159.800 1115.70 -3.80
Baht 30.310 32.55 +7.39
Peso 50.540 52.47 +3.82
Rupiah 14030.000 14375 +2.46
Rupee 71.003 69.77 -1.74
Ringgit 4.143 4.1300 -0.31
Yuan 7.016 6.8730 -2.03


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