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EM ASIA FX-Subdued dollar helps some Asian units rise, S.Korean won falls

Published 10/02/2019, 02:58 PM
Updated 10/02/2019, 03:00 PM
© Reuters.  EM ASIA FX-Subdued dollar helps some Asian units rise, S.Korean won falls
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(Adds text, updates prices)
By Devika Syamnath
Oct 2 (Reuters) - Some Asian currencies inched higher on
Wednesday as decade-low U.S. manufacturing activity data kept
the dollar subdued, while South Korea's won weakened after North
Korea fired a ballistic missile.
The data on factory activity hit global equity markets as it
increased worries about a slowing U.S. economy. USD/
South Korea said its neighbour fired at least one missile
off its east coast, possibly from a submarine, one day after
announcing the resumption of talks with the United States aimed
at ending its nuclear programme. "For the won, geopolitical risk premium is the main driver,
with North Korea testing some missiles .. that typically
triggers a pare back in long won positions," said Chang Wei
Liang, a macro strategist at DBS Bank in Singapore.
The South Korean won KRW=KFTC declined 0.5% in its second
straight session of weakening. Dismal inflation and exports data
had pressured the currency on Tuesday, after stoking bets of
further monetary policy easing for the trade-reliant economy.
The offshore yuan CNH=D3 traded 0.1% lower, while other
Chinese markets remained closed on account of the National Day
holiday.
The Singapore dollar SGD= edged down marginally, tracking
weakness in the offshore yuan, while Indonesia's rupiah IDR=
climbed slightly after two consecutive sessions of losses.
"The rupiah and rupee are more vulnerable to external
portfolio flows, given they are current account deficit
countries. If markets see a more significant pare back in risk
taking, then these are the two currencies to keep an eye on,"
said Chang Wei Liang.
Indian markets were closed on Wednesday for a public
holiday.

The following table shows rates for Asian currencies against
the dollar at 0611 GMT.
CURRENCIES VS U.S. DOLLAR

Currency Latest bid Previous day Pct Move
Japan yen 107.820 107.74 -0.07
Sing dlr 1.385 1.3849 -0.01
Taiwan dlr 31.055 31.045 -0.03
Korean won 1205.100 1199 -0.51
Baht 30.660 30.66 +0.00
Peso 51.940 52 +0.12
Rupiah 14185.000 14205 +0.14
Ringgit 4.190 4.193 +0.07

Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 107.820 109.56 +1.61
Sing dlr 1.385 1.3627 -1.62
Taiwan dlr 31.055 30.733 -1.04
Korean won 1205.100 1115.70 -7.42
Baht 30.660 32.55 +6.16
Peso 51.940 52.47 +1.02
Rupiah 14185.000 14375 +1.34
Ringgit 4.190 4.1300 -1.43


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