* Emerging Asian currencies climb broadly
* Risky assets rise on hopes for deal on U.S. debt ceiling
* Ringgit, rupee, and baht all gain about 0.3 pct
(Updates prices, adds text)
By Masayuki Kitano
SINGAPORE, Oct 11 (Reuters) - Asian currencies rose on
Friday as risk sentiment improved on growing hopes for a deal in
Washington to end a fiscal standoff and possibly avoid a U.S.
Most emerging Asian currencies pushed higher, with the
Malaysian ringgit, Thai baht and Indian rupee
all rising roughly 0.3 percent.
Republicans offered a plan to President Barack Obama on
Thursday that would extend the government's borrowing authority
for several weeks, staving off a default that could come as soon
as Oct. 17.
No deal emerged from a 90-minute meeting at the White House,
but talks continued into the night in an effort to re-open the
government and extend the government's borrowing authority
beyond the mid-October deadline.
Asian currencies are likely to stay firm in the near term if
the U.S. debt ceiling is actually extended, said Satoshi
Okagawa, senior global markets analyst for Sumitomo Mitsui
Banking Corporation in Singapore.
This is partly because a short-term deal, rather than a
longer-term solution, could add to uncertainty over just how
soon the U.S. Federal Reserve will start tapering its
bond-buying stimulus, he said.
"The Fed won't be able to step toward tapering unless there
is a clear-cut resolution," Okagawa said, referring to the U.S.
Market sentiment toward emerging Asian currencies has
generally improved recently, after the U.S. Federal Reserve
surprised markets in September by keeping its bond-buying
stimulus programme unchanged.
The shock decision created uncertainty over how soon the Fed
would start to scale back its bond-buying, and such doubts have
been reinforced this month as the U.S. government's partial
shutdown stirred worries about the potential impact on U.S.
"The expectation for tapering is now delayed," said a trader
for a Malaysian bank in Kuala Lumpur.
"But I sense people will look for opportunity to (go) long
the dollar on dips," he added.
Market players remain cautious about the longer-term outlook
for emerging Asian currencies, given the prospects for the Fed
to start tapering its monetary stimulus eventually, even if the
exact timing is unclear.
A recent Reuters poll showed that most Asian currencies were
expected to depreciate in the next 12 months.
The Singapore dollar lagged behind its regional
peers and eased slightly. A near-term focal point for the
Singapore dollar is a monetary policy decision by Singapore's
central bank on Monday.
Singapore's central bank is expected to keep monetary policy
unchanged next week as it stays on guard against inflation while
an expected contraction in third-quarter GDP is likely to be
seen as a temporary blip.
The Monetary Authority of Singapore is seen likely to
continue to let the local dollar appreciate at its current
trajectory, according to a Reuters survey of
CURRENCIES VS U.S. DOLLAR
* Taiwan dollar's previous close is from Oct. 9. Taiwan's
financial markets were closed on Thursday for a public holiday.
Change on the day at 0458 GMT
Currency Latest bid Previous day Pct Move
Japan yen 98.39 98.16 -0.23
Sing dlr 1.2488 1.2481 -0.06
Taiwan dlr 29.398 29.548 +0.51
Korean won 1071.15 1073.60 +0.23
Baht 31.32 31.40 +0.26
Peso 43.11 43.15 +0.09
Rupiah 11460.00 11480.00 +0.17
Rupee 61.23 61.39 +0.27
Ringgit 3.1820 3.1915 +0.30
Yuan 6.1171 6.1158 -0.02
Change so far in 2013
Currency Latest bid End prev year Pct Move
Japan yen 98.39 86.79 -11.79
Sing dlr 1.2488 1.2219 -2.15
Taiwan dlr 29.398 29.136 -0.89
Korean won 1071.15 1070.60 -0.05
Baht 31.32 30.61 -2.27
Peso 43.11 41.05 -4.78
Rupiah 11460.00 9630.00 -15.97
Rupee 61.23 54.99 -10.18
Ringgit 3.1820 3.0580 -3.90
Yuan 6.1171 6.2303 +1.85
(Editing by Kim Coghill)
- USA News