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EM ASIA FX-Post-ECB dollar strength hurts Asia FX; yuan at fresh 6-yr low

* Yuan to see 3rd weekly loss on corporate dollar demand
    * Philippine peso down; Duterte declares "separation" from
U.S.
    * Rupiah falls after Indonesia c.bank unexpectedly cuts
rates

 (Adds text, updates prices)
    By Jongwoo Cheon
    SINGAPORE, Oct 21 (Reuters) - Emerging Asian currencies slid
on Friday as the dollar hit a seven-month peak on the euro's
weakness after the European Central Bank dampened speculation
about plans to reduce stimulus, while lower oil prices soured
risk sentiment.
    Regional currencies came under further pressure as the
Chinese yuan touched another six-year low, dragging
the Singapore dollar to its weakest since early March.
 
    South Korea's won led regional losses on dollar
demand from importers.
    The Philippine peso fell a day after President
Rodrigo Duterte announced his "separation" from the United
States. Trade Minister Ramon Lopez on Friday said Manila would
maintain its trade and economic ties with the world's top
economy.  
    Indonesia's rupiah eased after the central bank
unexpectedly cut interest rates on Thursday. The
currency found some relief as most government bond prices
 rose.
    The Malaysian ringgit slumped with oil prices
falling, while investors were awaiting the country's 2017 budget
due later in the day.
    The U.S. dollar hit a seven-month high with the
euro's weakness.
    The ECB left its ultra-loose monetary policy unchanged on
Thursday but kept the door open to more stimulus in December,
with ECB President Mario Draghi dousing recent market
speculation that the central bank may begin tapering its 1.7
trillion euro asset-buying programme. 
    The ECB's monetary policy stance could continue to support
emerging Asian assets, but markets focused more on expectations
of the U.S. Federal Reserve's interest rate hike in December.
    "Emerging Asian currencies will weaken further until markets
price in 80-90 percent chance of a Fed hike in December," said
Sean Yokota, head of Asia strategy at Scandinavian bank SEB in
Singapore.
    U.S. interest rate futures implied traders saw more than a
70 percent chance of a rate hike in December, according to CME
Group's FedWatch program.
    Yokota also said sentiment could stay fragile until the U.S.
presidential election on Nov. 8, although Democratic
presidential nominee Hillary Clinton is seen beating Republican
rival Donald Trump.
    "Memories of Brexit are too close," Yokota said, referring
to Britain's surprise vote to leave the European Union in June.
    
    YUAN UNDERPERFORMS
    The yuan has lost 0.4 percent against the dollar so far this
week, and is set for a third straight weekly loss.
    The Chinese currency has been under pressure as the world's
second-largest economy has not shown clearer signs of a recovery
yet. Local companies also need dollars to repay foreign debts
and for overseas investments.
    "Weak exports scream for a weaker yuan, but at what expense
as far as capital outflows," said Stephen Innes, senior FX
trader for FX broker OANDA in Singapore.
    "The yuan will weaken gradually into the year-end from
fundamental issues unless there is a huge surprise in the
economic climate both in China and the globe," Innes said,
adding his year-end forecast for offshore yuan is
6.8000 per dollar. The so-called CNH fell to as weak as 6.7664
earlier.
    Singapore's dollar on Friday slid to 1.3954 to the
U.S. dollar, its weakest since March 3, extending its weekly
depreciation to 0.2 percent.
    The growing risks of recession in the trade-reliant economy
has raised prospects of an off-cycle easing in monetary policy,
a Reuters poll showed, although for now the consensus among
economists is for the central bank to sit tight in the hope the
economy sparks to life. 
    By contrast, the Thai baht has gained 0.4 percent
on hopes for calm after King Bhumibol Adulyadej, the world's
longest-reigning monarch, died last week.
    The Philippine peso has also risen 0.2 percent as sentiment
improved on optimism that Duterte's foreign visits would create
an inflow of business.
    China and the Philippines will sign $13.5 billion in deals
during the president's trip to China this week, Trade Minister 
Lopez said on Thursday. 
    
    CURRENCIES VS U.S. DOLLAR
    Change on the day at 0545 GMT
  Currency                Latest bid   Previous day  Pct Move
  Japan yen                   103.89         103.96     +0.07
  Sing dlr                    1.3934         1.3921     -0.09
  Taiwan dlr                  31.650         31.530     -0.38
  Korean won                 1135.60        1127.50     -0.71
  Baht                         35.13          34.99     -0.41
  Peso                        48.320         48.100     -0.46
  Rupiah                       13040          13005     -0.27
  Rupee                        66.87          66.81     -0.09
  Ringgit                     4.1900         4.1810     -0.21
  Yuan                        6.7566         6.7457     -0.16
                                                             
  Change so far in 2016                                      
  Currency                Latest bid  End prev year  Pct Move
  Japan yen                   103.89         120.30    +15.80
  Sing dlr                    1.3934         1.4177     +1.74
  Taiwan dlr                  31.650         33.066     +4.47
  Korean won                 1135.60        1172.50     +3.25
  Baht                         35.13          36.00     +2.47
  Peso                         48.32          47.06     -2.61
  Rupiah                       13040          13785     +5.71
  Rupee                        66.87          66.15     -1.07
  Ringgit                     4.1900         4.2935     +2.47
  Yuan                        6.7566         6.4936     -3.89
 

 (Reporting by Jongwoo Cheon; Editing by Jacqueline Wong)
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