Asian currencies slip on caution ahead of Trump-Xi meeting
Most emerging Asian currencies slipped on Thursday, as risk sentiment turned cautious ahead of a United States-China summit that could highlight trade tensions between the world's two largest economies.
The South Korean won led the losses with a drop of 0.8 per cent. A few other currencies also fell. The Taiwan dollar shed 0.6 per cent, while the Indian rupee eased 0.2 per cent.
Analysts said falls in regional equities helped weigh on Asian currencies.
Ahead of a meeting between US President Donald Trump and Chinese President Xi Jinping that starts on Thursday, investors were probably trimming their positions, said Peter Chia, FX strategist for United Overseas Bank.
"It makes sense for players to take profits," he said. Chia added, however, that he wasn't expecting Asian currencies to fall very sharply in the near term. "I don't think the trend is changing as of now because the political overhang is still there in the US.. The political factor will still dominate in the near-term."
Uncertainty over the prospects for pro-growth fiscal policies under the Trump administration has dragged down US bond yields and weighed on the dollar this year, supporting emerging Asian currencies.
SKOREAN WON
The won touched a three-week low of 1,134.1 per US dollar at one point, weighed down by concerns over geopolitical risks. The won fell after Japanese Prime Minister Shinzo Abe said on Thursday that he and US President Donald Trump agreed that North Korea's latest ballistic missile launch was "a dangerous provocation and a serious threat."
North Korea test-fired a ballistic missile into the sea off its east coast on Wednesday, ahead of the Trump-Xi summit.
CURRENCIES VS US DOLLAR
Change on the day at 0632 GMT
Currency Latest bid Previous Pct day Move
Japan yen 110.50 110.70 +0.18
Sing dlr 1.4016 1.4010 -0.04
Taiwan dlr 30.548 30.381 -0.55
Korean won 1133.00 1124.40 -0.76
Baht 34.53 34.52 -0.03
Peso 50.170 50.150 -0.04
Rupiah 13332 13320 -0.09
Rupee 65.00 64.88 -0.17
Ringgit 4.4340 4.4295 -0.10
Yuan 6.8982 6.8975 -0.01
Change so far in
2017
Currency Latest bid End prev Pct year Move
Japan yen 110.50 117.07 +5.95
Sing dlr 1.4016 1.4490 +3.38
Taiwan dlr 30.548 32.279 +5.67
Korean won 1133.00 1207.70 +6.59
Baht 34.53 35.80 +3.69
Peso 50.17 49.72 -0.90
Rupiah 13332 13470 +1.04
Rupee 65.00 67.92 +4.50
Ringgit 4.4340 4.4845 +1.14
Yuan 6.8982 6.9467 +0.70
The South Korean won led the losses with a drop of 0.8 per cent. A few other currencies also fell. The Taiwan dollar shed 0.6 per cent, while the Indian rupee eased 0.2 per cent.
Analysts said falls in regional equities helped weigh on Asian currencies.
Ahead of a meeting between US President Donald Trump and Chinese President Xi Jinping that starts on Thursday, investors were probably trimming their positions, said Peter Chia, FX strategist for United Overseas Bank.
"It makes sense for players to take profits," he said. Chia added, however, that he wasn't expecting Asian currencies to fall very sharply in the near term. "I don't think the trend is changing as of now because the political overhang is still there in the US.. The political factor will still dominate in the near-term."
Uncertainty over the prospects for pro-growth fiscal policies under the Trump administration has dragged down US bond yields and weighed on the dollar this year, supporting emerging Asian currencies.
SKOREAN WON
The won touched a three-week low of 1,134.1 per US dollar at one point, weighed down by concerns over geopolitical risks. The won fell after Japanese Prime Minister Shinzo Abe said on Thursday that he and US President Donald Trump agreed that North Korea's latest ballistic missile launch was "a dangerous provocation and a serious threat."
North Korea test-fired a ballistic missile into the sea off its east coast on Wednesday, ahead of the Trump-Xi summit.
CURRENCIES VS US DOLLAR
Change on the day at 0632 GMT
Currency Latest bid Previous Pct day Move
Japan yen 110.50 110.70 +0.18
Sing dlr 1.4016 1.4010 -0.04
Taiwan dlr 30.548 30.381 -0.55
Korean won 1133.00 1124.40 -0.76
Baht 34.53 34.52 -0.03
Peso 50.170 50.150 -0.04
Rupiah 13332 13320 -0.09
Rupee 65.00 64.88 -0.17
Ringgit 4.4340 4.4295 -0.10
Yuan 6.8982 6.8975 -0.01
Change so far in
2017
Currency Latest bid End prev Pct year Move
Japan yen 110.50 117.07 +5.95
Sing dlr 1.4016 1.4490 +3.38
Taiwan dlr 30.548 32.279 +5.67
Korean won 1133.00 1207.70 +6.59
Baht 34.53 35.80 +3.69
Peso 50.17 49.72 -0.90
Rupiah 13332 13470 +1.04
Rupee 65.00 67.92 +4.50
Ringgit 4.4340 4.4845 +1.14
Yuan 6.8982 6.9467 +0.70
