EM ASIA FX-Asian currencies edge up ahead of Fed head's testimony
(Adds text, updates prices)
By Patturaja Murugaboopathy
July 17 (Reuters) - Most Asian currencies edged higher
against the dollar on Tuesday ahead of the first U.S.
congressional testimony by Federal Reserve Chairman Jerome
Powell later in the day.
Powell will testify on the economy and monetary policy
before the U.S. Senate Banking Committee at 1400 GMT on Tuesday
and then before the House of Representatives Financial Service
Committee on Wednesday.
The dollar index, up about 5 percent over the past
three months, was down 0.1 percent on Tuesday.
"We expect him (Powell to) reiterate the recent "gradual
further increases" rhetoric. There appears to be limited
justification for him to project a more hawkish picture than
this," Terence Wu, an FX strategist at OCBC, said in a market
note.
"Thus, the balance of risks may be for him to under-deliver
on market expectations."
Among regional currencies, the South Korean won
was the biggest gainer, rising earlier more than 0.5 percent
against the dollar.
Lower crude prices boosted the Indian rupee and the
Indonesian rupiah. India and Indonesia are net buyers
of crude and benefit from lower import prices when oil costs
fall. The Malaysian ringgit edged lower.
Some traders said China's second-quarter GDP release on
Monday also lent support to regional currencies on Tuesday.
Although it showed growth had slowed down from the previous
quarter, the figures offered some relief because they were in
line with expectations.
Despite advances on the day, most analysts said Sino-U.S
trade tensions and faltering global economic growth would offer
long-term headwinds.
The International Monetary Fund said on Monday trade
conflicts following U.S. tariff actions threatened to derail a
global economic recovery and depress the prospects for
medium-term growth.
Stephen Innes, head of Asia-Pacific trading for Oanda, said
weakness in regional currencies will resume as there is a risk
that the United States will impose tariffs on $200 billion worth
of Chinese imports by August.
"We might continue to see these short-term reprieves. But I
don't think we will have a huge rally on the local currencies,
simply because of the prospects of trade war," Innes said.
The following table shows rates for Asian currencies against
the dollar at 0539 GMT.
CURRENCIES VS U.S. DOLLAR
Change as of 0539
GMT
Currency Latest Previous Pct
bid day Move
Japan yen 112.400 112.28 -0.11
Sing dlr 1.360 1.3619 +0.11
Taiwan dlr 30.543 30.575 +0.10
Korean won 1124.400 1129.2 +0.43
Baht 33.240 33.26 +0.06
Peso 53.490 53.53 +0.07
Rupiah 14370.00 14370 +0.00
0
Rupee 68.430 68.57 +0.20
Ringgit 4.043 4.04 -0.07
Yuan 6.682 6.6924 +0.16
Change so far in
2018
Currency Latest End 2017 Pct
bid Move
Japan yen 112.400 112.67 +0.24
Sing dlr 1.360 1.3373 -1.70
Taiwan dlr 30.543 29.848 -2.28
Korean won 1124.400 1070.50 -4.79
Baht 33.240 32.58 -1.99
Peso 53.490 49.93 -6.66
Rupiah 14370.00 13565 -5.60
0
Rupee 68.430 63.87 -6.66
Ringgit 4.043 4.0440 +0.02
Yuan 6.682 6.5069 -2.61
(Reporting by Patturaja Murugaboopathy in Bengaluru; Editing by
Neil Fullick)