EM ASIA FX-Most Asian currencies strengthen on Brexit, trade hopes
Adds text, updates prices
Oct 18 (Reuters) - Asia's trade-reliant currencies gained against the dollar on Friday, as Britain won European Union approval for a no-delay divorce deal and China expressed confidence about clinching a phased trade pact with the United States.
China's Commerce Ministry said on Thursday it hopes to reach a phased agreement with the United States and cancel tariffs as soon as possible, adding that trade wars had no winners.
That came as a relief to market participants after the new measures passed by the U.S. House of Representatives earlier this week related to pro-democracy protests in Hong Kong were expected to put some strain on the trade talks.
Meanwhile, European Union leaders gave their unanimous backing to a Brexit deal with Britain on Thursday, putting the onus on Prime Minister Boris Johnson to secure the British parliament's approval for the deal in a vote in two days' time.
"The bigger driver has been the positive spillover effect from UK getting close to a Brexit deal," said Khoon Goh, head of Asia research at ANZ in Singapore.
"The ongoing phase-1 deal between the U.S. and China is still contributing towards a bit more optimism for Asian currencies."
Leading the gains in Asia, the South Korean won KRW=KFTC rose 0.5% against the dollar and was on track for a third consecutive weekly advance.
Among other export-reliant currencies, the Taiwanese dollar TWD= and the Thai baht THB=TH rose 0.24% and 0.13%, respectively.
On other hand, China's yuan CNY=CFXS inched lower after economic growth slowed more than expected to 6.0% in the third quarter from a year earlier, the weakest pace in at least 27-1/2 years.
"The economic data surprised a bit... But that was not material enough to cause too much of a concern," said ANZ's Goh.
"But we did have some improvement in industrial production. So that helped to offset some of the disappointment in the GDP numbers."
China's industrial output grew a better-than-expected 5.8% in September, faster than the 17-year-low posted in August.
Lower oil prices pressured the Malaysian ringgit MYR=, while fiscal and economic worries pulled down the Indian rupee INR=IN. Both currencies shed about 0.1% on the day.
India is likely to miss its fiscal deficit target of 3.3% of gross domestic product for the current financial year by 30-50 basis points, two sources said, due to a sharp slowdown in the economy that has severely crimped tax collection goals.
The following table shows rates for Asian currencies against the dollar at 0508 GMT.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0508 GMT
Currency
Latest bid
Previous day
Pct Move
Japan yen
108.560
108.65
+0.08
Sing dlr
1.364
1.3644
+0.02
Taiwan dlr
30.609
30.681
+0.24
Korean won
1180.500
1187
+0.55
Baht
30.270
30.31
+0.13
Peso
51.320
51.34
+0.04
Rupiah
14140.000
14143
+0.02
Rupee
71.208
71.16
-0.07
Ringgit
4.182
4.178
-0.10
Yuan
7.078
7.0772
-0.00
Change so far in 2019
Currency
Latest bid
End 2018
Pct Move
Japan yen
108.560
109.56
+0.92
Sing dlr
1.364
1.3627
-0.10
Taiwan dlr
30.609
30.733
+0.41
Korean won
1180.500
1115.70
-5.49
Baht
30.270
32.55
+7.53
Peso
51.320
52.47
+2.24
Rupiah
14140.000
14375
+1.66
Rupee
71.208
69.77
-2.02
Ringgit
4.182
4.1300
-1.24
Yuan
7.078
6.8730
-2.89
(Reporting By Patturaja Murugaboopathy; Editing by Subhranshu Sahu)
((patturaja.muruga@thomsonreuters.com ; +91-80-6749-6540; Reuters Messaging: patturaja.muruga.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
