for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up
Company News

EM ASIA FX-Asia FX buoyed by soft dollar but down in Oct on US election, Fed rate worries

* Yuan up on strong PBOC fixing; down 1.4 pct for month
    * Won leads Oct losses on bond outflows, Korea politics

 (Adds text, updates prices)
    By Jongwoo Cheon
    SINGAPORE, Oct 31 (Reuters) - Most emerging Asian currencies
edged up on Monday as the dollar retreated after news that the
FBI will review more emails related to U.S. Democratic
presidential candidate Hillary Clinton's private email server.
    Regional currencies were set to post losses for the month,
however, amid prospects of a U.S. Federal Reserve interest rate
hike in December and mounting uncertainty over the U.S.
presidential election on Nov. 8.
    For the day, China's yuan rose as the central
bank in Beijing set its daily guidance rate at the
strongest in more than a month. 
    South Korea's won turned firmer on exporters'
demand for month-end settlements after hitting a 3-1/2-month
low.
    The U.S. dollar eased against a basket of major
currencies on Friday after the Federal Bureau of Investigation
revealed its plan to review more emails related to Clinton's use
of a private server while she was secretary of state.
 
    The investigation shook financial markets' conviction of a
Clinton victory over Republican Donald Trump next week.
    Scotiabank's FX strategist Qi Gao said the news may
undermine Clinton's popularity, while the prospect of a Trump
victory and ensuing uncertainty could see markets dial back
expectations of a Fed tightening in December. Markets see
Clinton as largely sticking to the status quo.
    "Emerging Asian currencies may rebound if the odds of a Fed
rate hike in December could decline due to the FBI's probe,"
said Gao in Singapore. 
    "But Asian currencies will not strengthen much as most Asian
economies are export-driven, which will suffer from the
protectionist policy if Trump wins," he added.
    Still, markets stayed wary of a Fed's rate increase in
December, especially as data showed on Friday the U.S. economy
grew at its fastest pace in two years in the third quarter.
 
    
    OCTOBER SLIDES
    The yuan has lost 1.4 percent against the dollar so far in
October.
    The Chinese currency hit six-year lows last week as the
central bank fixed mid-points weaker, reflecting the dollar's
overall strength.
    The won led regional losses in October, having lost 3.6
percent against the dollar so far this month, as political
crisis in South Korea added to blows when bond outflows already
hurt the currency.
    President Park Geun-hye faces a deepening crisis over
allegations an old friend enjoyed inappropriate influence over
her. The woman at the centre of the scandal, Choi Soon-sil,
returned to South Korea early on Sunday and her lawyer said she
will cooperate with prosecutors. 
    The crisis has sent Park's public support to an all-time
low. In one opinion poll, more than 40 percent of respondents
said Park should resign or be impeached. 
    "Investors dislike political uncertainty because it cannot
be hedged. Investors have to reduce exposure, which is painful,"
said Tim Condon, chief economist for Asia at ING in Singapore.
    "The decline in President Park's popularity seems above
average, however, which has raised uncertainty. It would
probably spike in the event she stepped down."
    Among other emerging Asian currencies, the Singapore dollar
 has lost more than 2 percent so far this month.
    The growing risk of a recession in the trade-reliant economy
has raised the prospects of an off-cycle easing in policy,
although for not the consensus among economists is for the
central bank to sit tight, a Reuters poll showed earlier this
month. 
    Thailand's baht has slid 0.9 percent throughout
October amid concerns that the death of King Bhumibol Adulyadej
may increase political uncertainties and hurt economic
activities in a near term.
    The Malaysian ringgit has slumped 1.6 percent so
far this month as slides in crude prices underscored worries
about the country's oil and gas revenues.
    
    CURRENCIES VS U.S. DOLLAR
    Change on the day at 0510 GMT
  Currency               Latest bid   Previous day  Pct Move
  Japan yen                  104.81         104.70     -0.10
  Sing dlr                   1.3916         1.3918     +0.01
  Taiwan dlr                 31.511         31.639     +0.41
  Korean won                1142.60        1144.90     +0.20
  Baht                        34.98          35.05     +0.20
 *Peso                       48.405         48.405      0.00
  Rupiah                      13045          13048     +0.02
 *Rupee                       66.79          66.79      0.00
  Ringgit                    4.2005         4.1970     -0.08
  Yuan                       6.7697         6.7810     +0.17
                                                            
  Change so far in 2016                                     
  Currency               Latest bid  End prev year  Pct Move
  Japan yen                  104.81         120.30    +14.78
  Sing dlr                   1.3916         1.4177     +1.88
  Taiwan dlr                 31.511         33.066     +4.93
  Korean won                1142.60        1172.50     +2.62
  Baht                        34.98          36.00     +2.91
  Peso                        48.41          47.06     -2.79
  Rupiah                      13045          13785     +5.67
  Rupee                       66.79          66.15     -0.96
  Ringgit                    4.2005         4.2935     +2.21
  Yuan                       6.7697         6.4936     -4.08
  * Financial markets in India and the Philippines are closed
for a holiday.

 (Reporting by Jongwoo Cheon; Additional reporting by Choonsik
Yoo in SEOUL; Editing by)
for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up