EM ASIA FX-Asia FX fall on U.S. fiscal breakthrough hope
* Asian currencies slip vs broadly firmer dollar
* Hope for progress on U.S. budget impasse boosts dollar
* Thai baht touches 3-week low after triggering stops
(Updates prices, adds text)
By Masayuki Kitano
SINGAPORE, Oct 10 (Reuters) - Emerging Asian currencies fell
on Thursday as the dollar rose broadly on hopes that U.S.
lawmakers may be inching toward resolving a fiscal standoff and
averting the risk of a U.S. debt default.
U.S. House of Representatives Republicans are considering
signing on to a short-term increase in the government's
borrowing authority to buy time for negotiations on broader
policy measures, according to a Republican leadership aide.
Agreement by Republicans and Democrats to raise the debt
ceiling would at least stave off a possible default after Oct.
17, when Treasury Secretary Jack Lew has determined the
government will no longer be able to borrow.
Against this backdrop, emerging Asian currencies slipped
broadly against the buoyant U.S. dollar, with the Thai baht
touching a three-week low.
Southeast Asian currencies generally retreated on a day when
their equities markets pushed higher, with Thai shares
gaining 0.8 percent.
"The dollar is being bought broadly," said a trader for a
Japanese bank in Singapore.
Other traders echoed that sentiment, saying Thursday's drop
in Asian currencies was mostly about the U.S. dollar's firmness,
rather than factors specific to Asia.
The South Korean won slipped 0.2 percent, partly
because of dollar demand from local importers.
Traders shrugged off the Bank of Korea's decision to hold
interest rates steady for a fifth consecutive month as the
widely anticipated move and comments from the news conference
did not greatly change near-term policy prospects.
THAI BAHT
The Thai baht touched a three-week low of 31.54 versus the
dollar.
A trader for a Thai bank in Bangkok said the dollar's rise
against the baht gained added steam after triggering stop-loss
dollar-buying at levels around 31.50.
Another Bangkok-based trader said, however, that there
seemed to be a heavy concentration of dollar sellers at levels
above 31.50.
The dollar faces resistance at its 55-day moving average
near 31.55 against the baht. Further away there is more
resistance at 31.68, which is the 50 percent retracement of the
dollar's Sept. 6 to Sept. 20 drop.
INDONESIAN RUPIAH
Indonesia's central bank, in a bid to reduce volatility in
the rupiah, has encouraged the country's state-controlled
enterprises to use hedging to manage their foreign-exchange
needs.
In a statement on Wednesday, Bank Indonesia (BI) specified
that the country's regulations on hedging also apply to
state-owned companies and not just private ones and individuals.
A Jakarta-based trader said such currency hedging could
involve "forwards and swaps", adding that an aim of the measures
was to try to increase the depth of Indonesia's financial
market.
CURRENCIES VS U.S. DOLLAR
*Taiwan's financial markets are closed on Thursday for a
public holiday.
*Won's previous close is from Oct. 8. South Korean markets
were closed on Wednesday for a public holiday.
Change on the day at 0500 GMT
Currency Latest bid Previous day Pct Move
Japan yen 97.80 97.35 -0.46
Sing dlr 1.2533 1.2499 -0.27
Taiwan dlr 29.516 29.548 +0.11
Korean won 1075.70 1073.70 -0.19
Baht 31.47 31.44 -0.10
Peso 43.23 43.14 -0.21
Rupiah 11540.00 11520.00 -0.17
Rupee 62.18 61.93 -0.40
Ringgit 3.2065 3.2000 -0.20
Yuan 6.1195 6.1211 +0.03
Change so far in 2013
Currency Latest bid End prev year Pct Move
Japan yen 97.80 86.79 -11.26
Sing dlr 1.2533 1.2219 -2.51
Taiwan dlr 29.516 29.136 -1.29
Korean won 1075.70 1070.60 -0.47
Baht 31.47 30.61 -2.73
Peso 43.23 41.05 -5.04
Rupiah 11540.00 9630.00 -16.55
Rupee 62.18 54.99 -11.56
Ringgit 3.2065 3.0580 -4.63
Yuan 6.1195 6.2303 +1.81
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(Additional reporting by Yena Park in SEOUL; Editing by Kim
Coghill)
