EM ASIA FX-Asian units make small moves as dollar recovers; baht firms again
* U.S. dollar recovers as some tariff worries abate
* S. Korea won benefits from reduced North Korea tensions
* Thai baht outperforms, strengthens for a 4th straight day
(Adds text, updates prices)
By Aaron Saldanha
March 8 (Reuters) - Asian currencies moved gingerly on
Thursday as the U.S. dollar recovered on positive labour market
data, while regional equities were higher on hopes that some
countries will get exemptions from coming U.S. trade tariffs.
The dollar index against a basket of six major currencies
was effectively flat at 89.592 after pulling away from a
two-week trough of 89.407 the previous day.
The MSCI's broadest index of Asia-Pacific shares outside
Japan rose 0.9 percent, led by solid gains in
Hong Kong.
Hopes for a steady reduction in tensions over North Korea
has helped the South Korean won firm over the past
few days. On Thursday, it edged up 0.08 percent against the
dollar while the country's benchmark equities index
gained more than 1 percent.
The Taiwan dollar was flat after data released on
Wednesday showed exports unexpectedly slipped in February.
The Singapore dollar weakened slightly.
The Indian rupee weakened 0.04 percent. Indonesia's
rupiah shed 0.07 percent against the dollar.
CHINESE YUAN
The yuan was 0.11 percent weaker despite exports
in February growing at their strongest annual pace in three
years.
The People's Bank of China set the strongest daily fix in
more than a week, at 6.3239 per U.S. dollar.
"We believe China authorities are likely to maintain a
policy of a stable yuan against a basket of trading partners
which leaves the U.S. dollar/Chinese yuan particularly sensitive
to broad dollar moves," said Tariq Ali, investment strategist at
Standard Chartered Bank.
THAI BAHT
The baht advanced for a fourth straight day,
firming 0.09 percent. It has strengthened about 4.1 percent this
year, after gaining about 9.8 percent in 2017, a performance
which some exporters fear will hurt Thailand's competitiveness.
Ali of Standard Chartered said the baht's "pro-cyclical,
risk-on" nature and positive market sentiment at the start of
the year are largely responsible for this year's gains.
The following table shows rates for Asian currencies against
the dollar at 0613 GMT.
CURRENCIES VS U.S. DOLLAR
Currency Latest Previous Pct Move
bid day
Japan yen 105.930 106.06 +0.12
Sing dlr 1.314 1.3137 -0.03
Taiwan dlr 29.252 29.254 +0.01
Korean won 1068.200 1069.1 +0.08
Baht 31.293 31.32 +0.09
Peso 51.980 51.98 0.00
Rupiah 13772.000 13762 -0.07
Rupee 64.905 64.88 -0.04
Ringgit 3.906 3.903 -0.08
Yuan 6.328 6.3206 -0.11
Change so far in 2018
Currency Latest End 2017 Pct Move
bid
Japan yen 105.930 112.67 +6.36
Sing dlr 1.314 1.3373 +1.77
Taiwan dlr 29.252 29.848 +2.04
Korean won 1068.200 1070.50 +0.22
Baht 31.293 32.58 +4.11
Peso 51.980 49.93 -3.94
Rupiah 13772.000 13565 -1.50
Rupee 64.905 63.87 -1.59
Ringgit 3.906 4.0440 +3.53
Yuan 6.328 6.5069 +2.83
(Reporting by Aaron Saldanha in Bengaluru; Editing by Richard
Borsuk)
