* Chinese yuan weakens 0.8% to 8-mth low
* Indonesian cenbank intervenes as rupiah eases up to 0.8%
* S.Korean won at lowest level since Jan 2017
(Adds text, updates prices)
By Niyati Shetty
Aug 2 (Reuters) - Most Asian currencies tumbled on Friday as
investors scrambled to safety after U.S. President Donald Trump
said he would slap more tariffs on Chinese goods, escalating
trade tensions.
The Chinese yuan CNY=CFXS weakened up to 0.8% to 6.950,
inching closer to the psychologically crucial 7 per dollar mark.
The currency hit its lowest since late November 2018.
Trump on Thursday said he would impose 10% tariffs on the
remaining $300 billion of Chinese imports starting Sept. 1,
marking an end to a temporary truce in a trade war between the
world's largest economies. "Trump's propensity to agitate with his inflated, if not
imagined hand, "holding all the cards", is a dangerous thing
given that global trade is a "house of cards" ... and China is
not about to fold," Vishnu Varathan, senior economist at Mizuho
Bank wrote in a note.
Senior Chinese diplomat Wang Yi on Friday said the
additional tariffs were "not a correct way" to deal with the
bilateral dispute. The safe haven Japanese yen JYP= strengthened against the
dollar on Friday as market sentiment soured for riskier assets.
USD/
The Taiwan dollar TWD=TP softened 0.5% to a six-week low,
while the Indian rupee INR=IN eased 0.4%.
The Malaysian ringgit MYR= weakened 0.2% as government
data showed exports fell, contrary to expectations for an
increase, as shipments to key markets tumbled. TO DEFEND RUPIAH
The rupiah IDR= declined as much as 0.8% to 14,225 against
the dollar, its weakest level since June 20, prompting the
central bank to intervene.
Bank Indonesia on Friday said it would intervene in the spot
foreign exchange, domestic non-deliverable forward and bond
markets to stabilise the rupiah. "The depreciation was triggered by profit taking in the bond
market that we think is temporary, due to risk-off after the
U.S. applies more tariffs to China," a senior official said.
TRADE TROUBLES DAMPEN WON
The won KRW=KFTC slipped 0.7% on the dollar as tensions
with Japan compounded concerns for the trade-reliant economy.
The currency fell to its weakest since January 2017.
Tokyo said on Friday it would remove South Korea from its
easy-trade "white list", drawing the threat of a firm response
from Seoul.
Tensions between the U.S. allies escalated last month after
Japan tightened curbs on exports of high-tech materials to the
country.
South Korean authorities were suspected of selling dollars
to curb the won's fall, helping the currency cut some of its
losses, dealers told Reuters. following table shows rates for Asian currencies against
the dollar at 0517 GMT.
CURRENCIES VS U.S. DOLLAR
Currency Latest bid Previous day Pct Move
Japan yen 107.090 107.33 +0.22
Sing dlr 1.376 1.3767 +0.08
Taiwan dlr 31.340 31.182 -0.50
Korean won 1196.800 1188.5 -0.69
Baht 30.880 30.86 -0.06
Peso 51.350 51.29 -0.12
Rupiah 14215.000 14110 -0.74
Rupee 69.280 69.05 -0.33
Ringgit 4.152 4.144 -0.19
Yuan 6.936 6.8979 -0.55
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 107.090 109.56 +2.31
Sing dlr 1.376 1.3627 -0.94
Taiwan dlr 31.340 30.733 -1.94
Korean won 1196.800 1115.70 -6.78
Baht 30.880 32.55 +5.41
Peso 51.350 52.47 +2.18
Rupiah 14215.000 14375 +1.13
Rupee 69.280 69.77 +0.71
Ringgit 4.152 4.1300 -0.53
Yuan 6.936 6.8730 -0.91