* Taiwan dollar strengthens for fifth straight day
* Thai baht weakens ahead of c. bank rate decision
* China's yuan inches lower
(Adds text, updates prices)
By Shriya Ramakrishnan
Dec 18 (Reuters) - Most emerging Asian currencies weakened
on Wednesday, as the dollar gained on renewed fears over a
chaotic exit of Britain from the European Union, while trading
in the region was subdued ahead of the holiday season.
Britain on Tuesday set a hard deadline of December 2020 to
reach a new trade deal with the EU, trying to pressure Brussels
to move more quickly to seal an accord.
The plunge in the pound supported the dollar to its
highest in a week against a basket of currencies.
"There is no real motivation to be taking on strong
directional views, especially with the fact that major risk
events are out of the way, so the scope for volatility is
reduced," Wei-Liang Chang, a forex and credit macro strategist
at DBS Bank said.
"There is some softness in activity since we are heading
towards the Christmas season...which is why we aren't seeing any
drastic moves except for the case of sterling."
The Taiwan dollar led gains in the region,
strengthening 0.2% to the dollar for a fifth straight day. The
currency has regained footing this year on the back of improving
exports and growth prospects and a pick up in equity inflows.
The Indonesian rupiah and Singapore dollar
edged lower, while the S. Korean won eased from a
1-month high hit in the previous session.
Markets will focus on Indonesia's central bank policy
meeting on Thursday, where it is widely anticipated to keep
rates unchanged after a series of policy loosening steps aimed
at lifting economic growth.
The Indian rupee was marginally lower, while the
Chinese yuan inched lower on rising corporate demand
for the greenback.
THAI BAHT IN FOCUS AHEAD OF C.BANK DECISION
The Thai baht depreciated 0.2% against the
greenback, ahead of the central bank policy decision later in
the day.
Bank of Thailand (BoT) is expected to leave its benchmark
interest rate at a record low after two cuts this year, a
Reuters poll showed, although it was likely to downgrade its
growth outlook again.
"While Baht strength remains one of the main concerns, BoT
might prefer to pause and assess how effective the measures it
has introduced on capital outflows have been," a Mizuho Bank
note said.
Baht is Asia's best performing currency this year so far, up
7.6% against the U.S. dollar, despite the central bank's steps
to rein in the baht's gains.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0553 GMT
Currency Latest bid Previous day Pct Move
Japan yen 109.450 109.47 +0.02
Sing dlr 1.357 1.3547 -0.13
Taiwan dlr 30.150 30.210 +0.20
Korean won 1165.600 1166.2 +0.05
Baht 30.260 30.21 -0.17
Peso 50.600 50.57 -0.06
Rupiah 14000.000 13985 -0.11
Rupee 71.063 70.97 -0.13
Ringgit 4.142 4.141 -0.02
Yuan 7.004 6.9968 -0.11
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 109.450 109.56 +0.10
Sing dlr 1.357 1.3627 +0.46
Taiwan dlr 30.150 30.733 +1.93
Korean won 1165.600 1115.70 -4.28
Baht 30.260 32.55 +7.57
Peso 50.600 52.47 +3.70
Rupiah 14000.000 14375 +2.68
Rupee 71.063 69.77 -1.82
Ringgit 4.142 4.1300 -0.29
Yuan 7.004 6.8730 -1.88
(Reporting by Shriya Ramakrishnan in Bengaluru; Editing by
Rashmi Aich)
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