Company News

EM ASIA FX-Growing US tightening fears rattle Asia FX; yuan hits 8-1/2-year low

* PBOC fixing weakest since June 2008; intervention
    * Won slumps on bond outflows, foreigners sell Korean
    * Ringgit near 14-month low as Malaysia bonds hit
    * Rupiah around 6-month trough; Singapore dlr at 10-month
    * Philippine peso hits 2008-global financial crisis level

 (Adds text, updates prices)
    By Jongwoo Cheon
    SINGAPORE, Nov 24 (Reuters) - Emerging Asian currencies
skidded on Thursday as views grew that the Federal Reserve will
tighten more aggressively given solid U.S. economic data, adding
to pressure from higher Treasury yields and fears over
Washington's trade protectionism.
    The Chinese yuan hit an 8-1/2-year low after the
People's Bank of China set its daily guidance rate at its
weakest since June 2008.
    Chinese state-owned banks sold dollars as the renminbi
weakened toward the psychological 7 per dollar level, traders
    Foreign exchange authorities in India, Indonesia and the
Philippines were also suspected of intervening on Thursday to
curb losses in their currencies, traders said.
    South Korea's won led regional depreciation on
bond outflows and as foreign investors were set to reverse a
buying spree in the equity market.
    The Malaysian ringgit hit an almost 14-month
trough, tracking slides in most government bond prices
    Indonesia's rupiah fell to a near six-month low as
foreign investors continued to sell local stocks. Most
long-term government bond prices slid.
    The Singapore dollar touched a 10-month trough on
dollar strength and after the city-state downgraded its
forecasts for economic growth and exports for this year after
confirmed a third-quarter contraction. 
    The Philippine peso slumped to levels last seen
in November 2008 as foreign investors keep dumping Manila shares
    The U.S. dollar hovered around a 14-year peak against
a basket of six major currencies as markets are now pricing in a
nearly 100 percent probability of a December Fed rate increase,
according to CME FedWatch.
    Some investors expect more hikes in 2017 if economic
momentum is sustained.
    U.S. Treasury yields extended their rise. The two-year yield
 hit its highest levels since April 2010 on Wednesday
as the market continued to bet that the incoming administration
of President-elect Donald Trump will increase debt-funded
spending and spur higher growth and inflation.
    Manufactured capital goods in the world's largest economy
rebounded last month on rising demand for machinery and
equipment. Consumer sentiment also rose this month with Trump's
election viewed as positive for their personal finances and the
    "Strong U.S. macro data, surging inflation expectations
arising from Trump's pro-growth stance and a more hawkish Fed
will hurt EM Asian currencies further, although their weakness
is technically seen excessive," said Qi Gao, a FX strategist
with Scotiabank in Singapore.
    "Any corrections in the USD and interventions will provide
chances to buy the USD," Gao said, referring to central banks of
emerging Asia's efforts to support their currencies.
    Regional currencies have suffered from capital outflows on
rising U.S. yields and growing concerns that Trump's
protectionist stance on trade will hit Asian exports.
    The won fell as South Korea posted a combined 878.1 billion
won ($742.2 million) worth of bond outflows in the first 23 days
of the month, a preliminary data from a financial regulator
    Foreign investors also sold a net 125.4 billion won worth of
shares in the local main stock exchange by mid-afternoon to snap
a five-day buying streak.
    A deepening political scandal has added to bearish
    Investigators raided the offices of Lotte Group, SK Group
and government agencies earlier in the day, officials said, as
part of a widening probe into alleged influence-peddling that
has engulfed President Park Geun-hye. 
    The South Korean currency recovered some of earlier losses
on expectations of demand from exporters for month-end
    Caution also grew over possible intervention by the foreign
exchange authorities to stem its weakness.
    The ringgit lost 0.5 percent to 4.4630 per dollar, its
weakest since Sept. 29, 2015, when the Malaysian currency hit a
17-year low.
    Short-term foreign investors sold the unit, while
hedging-related dollar bids also hurt the currency.
    The rupiah slumped 0.4 percent to 13,540 per dollar, its
weakest since June 3.
    Foreign investors offloaded 7.6 trillion rupiah's ($561.5
million) worth of Indonesian equities over the previous 11
straight sessions.
    Most long-term government bond prices fell with the 10-year
yield at 8.082 percent, its highest since March 3.
    The central bank was suspected of intervening around the
session low, traders said.
    Change on the day at 0430 GMT
  Currency               Latest bid   Previous day  Pct Move
  Japan yen                  112.71         112.50     -0.19
  Sing dlr                   1.4339         1.4318     -0.15
  Taiwan dlr                 31.930         31.880     -0.16
  Korean won                1183.10        1176.20     -0.58
  Baht                        35.70          35.57     -0.36
  Peso                       49.999         49.860     -0.28
  Rupiah                      13535          13480     -0.41
  Rupee                       68.83          68.56     -0.39
  Ringgit                    4.4550         4.4400     -0.34
  Yuan                       6.9203         6.9190     -0.02
  Change so far in 2016                                     
  Currency               Latest bid  End prev year  Pct Move
  Japan yen                  112.71         120.30     +6.73
  Sing dlr                   1.4339         1.4177     -1.13
  Taiwan dlr                 31.930         33.066     +3.56
  Korean won                1183.10        1172.50     -0.90
  Baht                        35.70          36.00     +0.84
  Peso                        50.00          47.06     -5.88
  Rupiah                      13535          13785     +1.85
  Rupee                       68.83          66.15     -3.89
  Ringgit                    4.4550         4.2935     -3.63
  Yuan                       6.9203         6.4936     -6.17
 (Reporting by Jongwoo Cheon; Additional reporting by IFR
Markets Catherine Tan; Editing by Kim Coghill)