EM ASIA FX-Most Asian units slip as trade worries weigh; Thai baht falls most

Credit: REUTERS/ATHIT PERAWONGMETHA

Most emerging Asian currencies inched lower on Wednesday, with sentiment largely subdued as investors continued to grapple with worries over the Sino-U.S. trade dispute and the global economic outlook.

By Rashmi Ashok

Aug 28 (Reuters) - Most emerging Asian currencies inched lower on Wednesday, with sentiment largely subdued as investors continued to grapple with worries over the Sino-U.S. trade dispute and the global economic outlook.

Any early hopes of headway in trade talks were doused after China's foreign ministry reiterated on Tuesday that it had not heard of any recent telephone call between the United States and China on trade.

"Markets continue to trade in a nervous fashion as investors struggle to deal with the almost daily see-sawing of global trade prospects," Nick Twidale, director and co-founder at trading firm Xchainge, said in a note.

"The one certainty for traders at the moment seems to be uncertainty."

Asian units came under added pressure as the dollar .DXY against a basket of currencies recovered slightly to trade at 98.068 by 0531 GMT.

The Thai baht THB=TH slipped 0.3% and was the session's worst performer, running out of steam after notching three straight sessions of gains.

The Korean won KRW=KFTC fell as much as 0.2% as its political and economic feud with neighbouring Japan deepened.

South Korea summoned Japan's ambassador to protest a decision to remove Seoul's fast-track export status, which took effect on Wednesday.

Earlier this month, Japan dropped South Korea from a so-called "white list" of favoured trade partners, which prompted a tit-for-tate retaliation from South Korea.

Currencies of net oil importers came under pressure as crude prices ticked higher. The Indian rupee INR=IN and Indonesian rupiah IDR=ID slipped 0.2% and 0.1%, respectively.

Meanwhile, the Chinese yuan inched up against the dollar after the central bank's official midpoint fix was firmer-than-expected, widely seen as an official attempt to slow the pace of depreciation.

The central bank's firmer guidance lifted the yuan up for the first time in 10 days. In onshore spot trade, the yuan CNY=CFXS gained nearly 0.1%.

The following table shows rates for Asian currencies against the dollar at 0528 GMT.

CURRENCIES VS U.S. DOLLAR

Currency

Latest bid

Previous day

Pct Move

Japan yen

105.850

105.72

-0.12

Sing dlr

1.389

1.3891

+0.00

Taiwan dlr

31.400

31.415

+0.05

Korean won

1214.000

1211.2

-0.23

Baht

30.660

30.57

-0.29

Peso

52.260

52.24

-0.04

Rupiah

14260.000

14250

-0.07

Rupee

71.613

71.48

-0.19

Ringgit

4.209

4.202

-0.17

Yuan

7.158

7.1625

+0.06

Change so far in 2019

Currency

Latest bid

End 2018

Pct Move

Japan yen

105.850

109.56

+3.50

Sing dlr

1.389

1.3627

-1.90

Taiwan dlr

31.400

30.733

-2.12

Korean won

1214.000

1115.70

-8.10

Baht

30.660

32.55

+6.16

Peso

52.260

52.47

+0.40

Rupiah

14260.000

14375

+0.81

Rupee

71.613

69.77

-2.57

Ringgit

4.209

4.1300

-1.88

Yuan

7.158

6.8730

-3.98

(Reporting by Rashmi Ashok in Bengaluru; Editing by Simon Cameron-Moore)

((Rashmi.Ashok@thomsonreuters.com; +918067491689;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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