EM ASIA FX-Most Asian currencies slip as dollar recovers after U.S. govt shutdown

(Adds text, updates prices)

By Christina Martin

Jan 22 - Most emerging Asian currencies edged lower on

Monday as the dollar drew support from higher U.S. bond yields

and managed to hold above three-year lows, after pulling back

slightly on news of the U.S. government shutdown.

The shutdown took effect at midnight on Friday after

Democrats and Republicans, locked in a bitter dispute over

immigration and border security, failed to agree on a

last-minute deal to fund government operations.

The dollar's index against a basket of major

currencies initially dipped to hit 90.155 but was last up 0.07

percent as the 10-year Treasury yield extended

Friday's rise to touch a 3-1/2-year high.

"Currently, the market optimism is that the (U.S.

government) shutdown is going to be sorted out soon, and that's

the reason the dollar did not dip too much," said a Thai bank

forex strategist.

"The markets believe that the dollar has been depreciated

too much and will be able to rebound in short term."

The Korean won dropped as much as 0.4 percent,

while the Philippine peso fell to its lowest in nine

weeks, also down as much as 0.4 percent.

The won and the peso were the biggest losers in the region.

The Indonesian rupiah marked its biggest intraday

percentage loss in three weeks as it slipped as much as 0.3

percent, ending two straight sessions of gains.

The Indian rupee dipped as much as 0.2 percent,

while China's yuan broke a six-session gaining

streak, posting its biggest intraday percentage loss in more

than a week.

The Taiwan dollar rose as much as 0.8 percent and

hit a five-year high, on track to gain for a second consecutive

session.

The Thai baht, the Singapore dollar and the

Malaysian ringgit all traded flat.

CHINESE YUAN

China's yuan eased slightly against the U.S.

dollar on Monday when the greenback consolidated after

sustaining losses on news of the U.S. government shutdown.

The People's Bank of China (PBOC) recalibrated the template

for daily yuan fixings recently to nullify a discretionary

counter-cyclical factor it introduced into the formula last year

to curb the currency's decline.

The PBOC set its official yuan midpoint at 6.4112 per dollar

prior to market opening on Monday, its highest in more than two

years.

In the spot market, the onshore yuan opened at

6.4080 per dollar and was changing hands at 6.4078 at midday, 48

pips weaker than the previous late session's close.

TAIWAN DOLLAR

Unlike regional peers that fell as the dollar recovered some

of its earlier losses, Taiwan's dollar hit its highest

since January 25, 2013, climbing as much as 0.8 percent.

Taiwan's export orders are expected to have risen in

December at a faster pace than the previous month and clocked a

17th straight month of gains, as demand for the island's

technology products remained robust, a Reuters poll showed.

Taiwan's export data is due later in the day.

The following table shows rates for Asian currencies against

the dollar at 0513 GMT.

CURRENCIES VS U.S. DOLLAR

Currency Latest bid Previous day Pct Move

Japan yen 110.790 110.76 -0.03

Sing dlr 1.321 1.3207 -0.05

Taiwan dlr 29.217 29.430 +0.73

Korean won 1069.000 1065.9 -0.29

Baht 31.870 31.86 -0.03

Peso 50.890 50.72 -0.33

Rupiah 13341.000 13312 -0.22

Rupee 63.913 63.85 -0.11

Ringgit 3.939 3.936 -0.08

Yuan 6.408 6.4030 -0.07

Change in 2018

Currency Latest bid End 2017 Pct Move

Japan yen 110.790 112.67 +1.70

Sing dlr 1.321 1.3373 +1.20

Taiwan dlr 29.217 29.848 +2.16

Korean won 1069.000 1070.50 +0.14

Baht 31.870 32.58 +2.23

Peso 50.890 49.93 -1.89

Rupiah 13341.000 13565 +1.68

Rupee 63.913 63.87 -0.07

Ringgit 3.939 4.0440 +2.67

Yuan 6.408 6.5069 +1.55

(Reporting By Christina Martin in Bengaluru; Editing by Eric

Meijer)