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EM ASIA FX-Korean won set for worst fall in nearly 8 weeks on U.S-Korea tensions

    Aug 9 (Reuters) - Most Asian currencies stumbled on
Wednesday with the Korean won destined for its biggest fall in
nearly eight weeks as North Korea warned it is "carefully
examining" plans for a missile strike on the U.S. Pacific
territory of Guam.
    The won was trading down 0.6 percent at 1134.8 at 0556 gmt.

    North Korea's reference to an attack on Guam followed     
after President Donald Trump said the U.S. would respond to
threats from North Korea with "fire and fury".
    "We have been down this road before, until the fireworks
happen it will remain in the headlines, but in the past the
markets have faded these types of moves. I think we have to be
really sensitive to both liquidity conditions and further
headline risk over the next 24 hours," said Stephen Innes,
senior trader at OANDA.
    "China basically buttresses the North Korea economy from top
to bottom. We are going to have international pressures from the
U.S. and all the developed-world leaders who see this escalating
a bit too far. I think there is going to be pressure on China to
make some serious economic sanctions towards North Korea until
they give up the plot of military escalation."
    Amid these geopolitical tensions the greenback weakened
against the yen which rose to levels unseen in about 8
weeks.
    The rupee and the Indonesian rupiah edged
lower, as much as 0.3 percent and 0.1 percent respectively.
     Meanwhile, the yuan rose 0.2 percent to its
highest since October 2016, and is headed for its third
consecutive day of gains. 
    China's annual producer price inflation held steady and
consumer inflation slowed marginally in July as prices for key
raw materials rose slightly.
    "We have to be careful in markets like today with one of the
big trading centers on holiday. Liquidity is quite taxing in the
market space right now amongst emerging markets. If you look at
the typical depth of the market in August it has just been not
too buoyant," Innes said. 
    Singapore markets are closed for a national holiday.
    
    PHILIPPINE PESO
    
    The Philippine peso followed the downward trend
in the broader market and fell by as much as 0.5 percent. 
    The peso, on its third straight day in negative territory,
is headed for its worst fall in nearly 8 weeks.
    The International Monetary Fund said the Philippine economy
is likely to grow at 6.6 percent this year, down from the 6.8
percent growth forecast announced in February. 
    
    The following table shows rates for Asian currencies against
the dollar at 0529 GMT.

    CURRENCIES VS U.S. DOLLAR
    
 Change as at 0529 GMT : 
  Currency                  Latest    Previous      Pct
                               bid         day     Move
  Japan yen              109.960         110.3    +0.31
  Taiwan dlr             30.220         30.201    -0.06
  Korean won             1135.000       1125.1    -0.87
  Baht                   33.260         33.256    -0.01
  Peso                   50.670          50.44    -0.45
  Rupiah                 13327.000       13312    -0.11
  Rupee                  63.763          63.63    -0.22
  Ringgit                4.286           4.284    -0.05
  Yuan                   6.693          6.7080    +0.23
                                                       
  Change so far in 2017                                
  Currency               Latest     End 2016        Pct
                         bid                       Move
  Japan yen              109.960        117.07    +6.47
  Taiwan dlr             30.220         32.279    +6.81
  Korean won             1135.000      1207.70    +6.41
  Baht                   33.260          35.80    +7.64
  Peso                   50.670          49.72    -1.87
  Rupiah                 13327.000       13470    +1.07
  Rupee                  63.763          67.92    +6.52
  Ringgit                4.286          4.4845    +4.63
  Yuan                   6.693          6.9467    +3.79
 
 (Reporting by Hanna Paul; Editing by)
  
 
 
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