(Adds text, updates prices)
By Aby Jose Koilparambil
Jan 23 (Reuters) – Most Asian currencies advanced on
Wednesday with the Chinese yuan bouncing on shifting
sentiment around Sino-U.S. trade talks, while lower oil prices
boosted the Indian rupee and the Indonesian rupiah
.
White House economic adviser Larry Kudlow, a top aide to
U.S. President Donald Trump, on Tuesday denied reports that a
preliminary trade meeting between U.S. and Chinese officials was
cancelled. The report had briefly shaken up risky assets
overnight.
The yuan rebounded 0.4 percent for its best single-session
gain since Jan. 15.
Currency markets, particularly those of emerging economies,
have recently been weighed down by the trade dispute between the
world’s top two economies, the Brexit dilemma and on signs of a
broadening global economic slowdown.
Oil prices dropped about 2 percent overnight on concerns
slower world growth could dent fuel demand with below-expected
production cuts by Russia adding to the downside pressure.
Oil managed to stabilise on Wednesday on hopes Chinese
authorities will ramp up stimulus to juice economic growth. That
view was supported by Chinese finance ministry officials’ signal
of higher government spending this year.
The Indian rupee firmed as much as 0.4 percent to 71.15
against the dollar, while the Indonesian rupiah added 0.3
percent.
Both India and Indonesia are major net importers of oil in
the region and any swing in the prices of the commodity would
have a major impact on the countries’ fiscal status.
“Besides the optimism in trade talks, the liquidity
injection from China’s central bank through the targeted
medium-term lending facility (TMLF) tool comes into the picture
and has lifted the sentiment in the market. But the week’s range
so far has been muted,” said Christopher Wong, senior forex
strategist at Maybank.
The South Korean won rose 0.4 percent, in tandem
with the country’s KOSPI stock index, helped by the
optimism over U.S.-China talks.
The Philippine peso and the Malaysian ringgit
edged down, ahead of the respective country’s GDP and
inflation data release on Thursday.
A Reuters poll forecast Philippine economic growth to have
sped up 6.2 percent from a year earlier, marginally up from a
three year low recorded in July-September.
Malaysia’s consumer price index (CPI) was expected to rise
0.4 percent in December from a year earlier, a Reuters poll
showed, slightly faster than the previous month.
CHINESE YUAN
China’s yuan rebounded against the dollar, recovering all of
its losses in the previous session, supported by a relief bounce
in offshore yuan overnight and as companies took profits after a
dip earlier this week.
Prior to the market opening on Wednesday, the People’s Bank
of China set the midpoint rate lower for the fourth
straight session at 6.7969 per dollar, 115 pips or 0.17 percent
weaker than the previous fix of 6.7854.
The following table shows rates for Asian currencies against
the dollar at 0610 GMT.
CURRENCIES VS U.S. DOLLAR
Currency Latest bid Previous day Pct Move
Japan yen 109.620 109.36 -0.24
Sing dlr 1.359 1.3595 +0.06
Taiwan dlr 30.889 30.896 +0.02
Korean won 1127.300 1130.5 +0.28
Baht 31.720 31.81 +0.28
Peso 52.730 52.789 +0.11
Rupiah 14170.000 14210 +0.28
Rupee 71.200 71.44 +0.33
Ringgit 4.131 4.13 -0.02
Yuan 6.787 6.8076 +0.30
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 109.620 109.56 -0.05
Sing dlr 1.359 1.3627 +0.29
Taiwan dlr 30.889 30.733 -0.51
Korean won 1127.300 1115.70 -1.03
Baht 31.720 32.55 +2.62
Peso 52.730 52.47 -0.49
Rupiah 14170.000 14375 +1.45
Rupee 71.200 69.77 -2.01
Ringgit 4.131 4.1300 -0.02
Yuan 6.787 6.8730 +1.27
(Reporting by Aby Jose Koilparambil in Bengaluru
Editing by Shri Navaratnam)
