EM ASIA FX-Rupee slides, Rupiah optimistic after trade surplus
(Repeats with no changes to text)
* EM Asia weighed by strong dollar sentiment
* Rupee slides on strong oil prices
* Rupiah checks losses on Sept trade surplus
By Sumeet Gaikwad
Oct 15 (Reuters) - Most Asian currencies declined against a
stronger dollar on Monday. The Indian rupee led the slide as
strong oil prices hurt the currency. But a surprise September
trade surplus posted by Indonesia helped the rupiah come off
lows.
The recent spike in U.S. yields, the ongoing tariff war
between the United States and China, and the uncertainty over
hanging over the UK's efforts to negotiate its withdrawal from
the European Union have pulled investors away from emerging
markets.
The rupiah fell as much as 0.3 percent in early
trade, before steadying to stand just 0.13 percent weaker at
15,220 per dollar after Indonesia's reported its trade balance
had unexpectedly swung back to surplus in September.
The Chinese yuan traded slightly weaker at 6.9182
per dollar after the central bank chief there was still room for
further adjustments in interest rates and banks' reserve
requirement ratios (RRRs) to support the economy if needed.
Investors were also awaiting GDP data due later in the week
to gauge the effects of a Sino-U.S. trade war on China's
economy, while U.S. Treasury Secretary Steven Mnuchin has said
that discussion of the exchange rate should form part of any
negotiations to settle the trade dispute.
The yuan has fallen more than 8 percent against the dollar
since the end of April, and was nearing the psychologically
important 7.0 level that has been unseen in a decade.
The Indian rupee was the worst performing emerging
Asian currency, just as it has been for the year so far,
weakening 0.42 percent to 73.868 against the dollar on Monday as
higher oil prices weighed. So far this year it has lost 13.5
percent.
India is the third largest net importer of oil in the world
and higher prices and a weaker currency put pressure on the
already wide current account deficit.
Indian inflation data is expected show prices rose faster in
September, possibly adding to pressure on the Reserve Bank of
India to tighten monetary policy, a Reuters poll found.
Thai markets were closed for a holiday.
INDONESIAN RUPIAH
The rupiah erased a bulk of its losses after reporting a
trade surplus for September but traded marginally lower as
investors remained cautious about the potential for strong oil
prices to undo the improvement in the trade balance.
"Higher oil prices will be the main concern. Many investors
are expecting the current trade surplus to be temporary as oil
prices are going higher," said Fakhrul Fulvian, an economist at
Trimegah Securities.
The rupiah has declined nearly 11 percent this year, had
prompted the central bank to curb select imports as well as hike
its key interest rate several times.
The following table shows rates for Asian currencies against
the dollar at 0515 GMT.
CURRENCIES VS U.S. DOLLAR
Change at 0515 GMT
Currency Latest bid Previous day Pct Move
Japan yen 111.980 112.19 +0.19
Sing dlr 1.379 1.3774 -0.09
Taiwan dlr 30.922 30.910 -0.04
Korean won 1133.700 1131.4 -0.20
Peso 54.110 54.13 +0.04
Rupiah 15220.000 15200 -0.13
Rupee 73.868 73.56 -0.42
Ringgit 4.156 4.153 -0.07
Yuan 6.918 6.9146 -0.04
Change so far in 2018
Currency Latest bid End 2017 Pct Move
Japan yen 111.980 112.67 +0.62
Sing dlr 1.379 1.3373 -3.00
Taiwan dlr 30.922 29.848 -3.47
Korean won 1133.700 1070.50 -5.57
Peso 54.110 49.93 -7.73
Rupiah 15220.000 13565 -10.87
Rupee 73.868 63.87 -13.53
Ringgit 4.156 4.0440 -2.69
Yuan 6.918 6.5069 -5.94
(Reporting by Sumeet Gaikwad and Ambar Warrick in Bengaluru;
Editing by Simon Cameron-Moore)
