EM ASIA FX-China economic worries, Fed caution hits Asia FX
* Won hits 5-month low on offshore funds; exporters cut
* Philippine peso at 5-week low on corporate dlr demand
* Rupiah touches 2-month low; long-term bond yields up
(Adds text, updates prices)
By Jongwoo Cheon
SINGAPORE, Sept 15 (Reuters) - Most emerging Asian
currencies fell on Monday as disappointing China data sparked
concerns of a sharp slowdown in the world's second-largest
economy when the U.S. Federal Reserve is expected to raise
interest rates earlier than forecast.
The South Korean won hit a near five-month low,
while Indonesia's rupiah fell to its weakest in more
than two months. The Philippine peso touched a
five-week low.
Regional shares lost ground after data showed on Saturday
that China's factory output grew at the weakest pace in nearly
six years in August, missing market expectations, while growth
in other key sectors also cooled.
That came as investors wait to see if the Fed will provide
any signal on the timing of a rate increase at its two-day
policy review starting on Tuesday.
As markets prepare for the meeting, giving the dollar a firm
bias, one-month implied volatility in most emerging Asian
currencies rose from historic lows.
"Weak Chinese data combined with increasingly hawkish
expectations on the Fed should pressure Asian currencies during
the early part of the week," said Frances Cheung, head of Asian
rates strategy at Credit Agricole CIB in Hong Kong.
Regional currencies may rebound later into the week if the
Fed stays dovish, but that would be just "temporary," Cheung
said.
"It is only a matter of timing in terms of Fed rate hike.
So, if they don't provide any hint at this week's meeting, they
may do it at the next one."
Last week, most emerging Asian currencies already suffered
another week of losses on growing expectations that the U.S.
central bank may signal an earlier-than-expected rate increase
this week.
WON
The won slid as much as 0.6 percent to 1,041.8 per dollar,
its weakest since April 22 on selling from offshore funds.
The South Korean currency recovered some of its earlier
losses as exporters chased it for settlements.
The won also has a chart support at 1,043.6, its 200-day
moving average. It has been firmer than the average since
September last year.
"It looks difficult for the won to stay weaker than 1,040,"
said a South Korean bank trader in Seoul.
"Offshore funds did not sell the won there, while exporters
became more active," the trader added.
On Friday, demand from exporters helped the won end local
trade firmer.
RUPIAH
The rupiah fell 0.5 percent to 11,882 per dollar, its
weakest since July 4 with long-term government bond yields
higher.
The official Jakarta Interbank Spot Dollar Rate (JISDOR),
which the central bank launched last year in an effort to manage
exchange rate fluctuations, was fixed at 11,875 rupiah per
dollar, weaker than the previous session's 11,831.
PHILIPPINE PESO
The peso lost as much as 0.5 percent to 44.130 per dollar,
its weakest since Aug. 8, amid dollar demand from local
importers.
The Philippine currency pared some of its earlier losses as
the dollar eased against a basket of major currencies.
"We will see a correction (in dollar/peso) lower in the next
few sessions as the market adjusts its positions," a senior bank
trader in Manila said.
The peso has a 200-day moving average at 44.205. It has been
closing daily sessions stronger than the average since May 9.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0420 GMT
Currency Latest bid Previous day Pct Move
Japan yen 107.17 107.34 +0.16
Sing dlr 1.2654 1.2630 -0.19
Taiwan dlr 30.034 30.068 +0.11
Korean won 1037.10 1035.30 -0.17
Baht 32.26 32.19 -0.21
Peso 44.08 43.91 -0.37
Rupiah 11882.00 11818.00 -0.54
Rupee 61.00 60.65 -0.58
Ringgit 3.2100 3.1975 -0.39
Yuan 6.1393 6.1346 -0.08
Change so far in 2014
Currency Latest bid End prev year Pct Move
Japan yen 107.17 105.28 -1.77
Sing dlr 1.2654 1.2632 -0.17
Taiwan dlr 30.034 29.950 -0.28
Korean won 1037.10 1055.40 +1.76
Baht 32.26 32.86 +1.87
Peso 44.08 44.40 +0.73
Rupiah 11882.00 12160.00 +2.34
Rupee 61.00 61.80 +1.31
Ringgit 3.2100 3.2755 +2.04
Yuan 6.1393 6.0539 -1.39
(Additional reporting by KyoungHo Lee in SEOUL; Editing by
Jacqueline Wong)
