* S. Korean won top decliner as trade issues with Japan
weigh
* Baht down, cenbank not happy with hot money into Thailand
* Indian rupee set to snap ten straight gaining sessions
(Adds text, updates prices)
By Devika Syamnath
July 8 (Reuters) - Most Asian currencies weakened on Monday
after the dollar took heart from strong U.S. jobs data that
tempered expectations for a rate cut from the Federal Reserve.
Friday's strong U.S. jobs numbers for June reduced hopes for
a Fed rate cut, and investors are looking ahead to the Fed
chairman's testimony to Congress this week for clues on policy
direction. MKTS/GLOB
The Korean won KRW=KFTC was the weakest Asian currency
with a 0.8% decline. Adding to the won's woes was a trade
skirmish with Japan, which has tightened export curbs on key
materials used by South Korean makers of chips and smartphone
displays. Thailand's baht THB=TH receded 0.6% against the dollar,
cooling down from a recent rally as weak economic growth
reinforced calls for a central bank rate cut.
Thailand's central bank is not happy with hot money flowing
into the country and has sometimes taken action on excessive
moves in the baht, the governor said on Monday. The baht remains Asia's best performer thanks to a weak
dollar, foreign fund inflows and the country's large current
account surplus.
Malaysia's ringgit MYR= traded 0.2% lower ahead of its
central bank rate decision on Tuesday. The bank is expected to
keep its powder dry after cutting rates by 25 basis points in
May.
Taiwan's dollar TWD=TP weakened 0.3% as the economy
grapples with slowing growth in China, Taiwan's biggest trade
partner.
RESILIENT RUPEE
India's rupee INR=IN was 0.3% lower after having rallied
for ten straight sessions. In its budget released on Friday, the
government raised import tariffs and proposed easing foreign
investment norms in a bid to kickstart the economy.
India's fiscal deficit target for 2019/20 surprised at 3.3%
of gross domestic product (GDP). A Reuters poll had projected up
to 3.5% for the current fiscal year. "Going ahead we expect this fiscal conservatism and swirling
RBI (Reserve Bank Of India) rate cut expectations to undergird
demand for Indian govies (government bonds)," OCBC said in a
note.
"Expect the INR to be one of the more resilient currencies
in the face of any bouts of USD strength," it added.
The following table shows rates for Asian currencies against
the dollar at 0522 GMT.
CURRENCIES VS U.S. DOLLAR
Currency Latest bid Previous day Pct Move
Japan yen 108.300 108.45 +0.14
Sing dlr 1.360 1.3594 -0.07
Taiwan dlr 31.185 31.107 -0.25
Korean won 1179.900 1170.4 -0.81
Baht 30.810 30.64 -0.55
Peso 51.300 51.329 +0.06
Rupiah 14125.000 14080 -0.32
Rupee 68.620 68.42 -0.29
Ringgit 4.143 4.134 -0.21
Yuan 6.890 6.8940 +0.05
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 108.300 109.56 +1.16
Sing dlr 1.360 1.3627 +0.17
Taiwan dlr 31.185 30.733 -1.45
Korean won 1179.900 1115.70 -5.44
Baht 30.810 32.55 +5.65
Peso 51.300 52.47 +2.28
Rupiah 14125.000 14375 +1.77
Rupee 68.620 69.77 +1.68
Ringgit 4.143 4.1300 -0.30
Yuan 6.890 6.8730 -0.25