ASIA-FOREX/EMERGING (TABLE):EM ASIA FX-Most Asian currencies gain as equities shine, yuan bounces

| Sep 13, 2017, 10:50 IST

(Adds text, updates prices) By Christina Martin Sept 13 (Reuters) – Most emerging Asian currencies brushed off the recent dollar rally and edged higher on Wednesday as the Chinese yuan rebounded from three straight sessions of losses and Asian shares inched up to a 10-year high. The yuan rose as much as 0.2 percent, little impacted by the central bank’s weaker fixing of the yuan midpoint. The major Wall Street indexes hit record closing highs on Tuesday which lifted Asian shares to a fresh 10-year peak. “Asia FX is responding more to capital inflows and positive global sentiment; emerging Asian equities would be a good gauge,” said Emmanuel Ng, FX strategist at Oversea-Chinese Banking Corporation Ltd. “Some normalcy has returned to the yuan fixings, but yes, the yuan appreciation has provided a positive anchor for Asian FX.” The dollar was up 0.1 percent against the yen, extending its sharp rally, and at its highest in almost two weeks. “Improving risk appetite levels and returning portfolio inflows into the emerging markets region are overriding any background dollar resilience,” added Ng. The won gained as much as 0.3 percent, while the Singapore dollar was on track to snap three consecutive sessions of losses, up as much as 0.2 percent. Indonesia’s rupiah, however, slipped 0.1 percent, and the Philippine peso, resuming trade after markets were shut in the previous session due to floods, also edged down slightly. CHINESE YUAN China’s yuan strengthened slightly on Wednesday, up 0.1 percent, set to snap three consecutive days of declines, supported by corporate dollar selling. China’s central bank lowered its official yuan midpoint for a second straight day to 6.5382 per dollar prior to market opening. “Over the last few weeks, the PBOC (People’s Bank of China) figured it had enough and steered the dollar-yuan higher this week,” said Emmanuel Ng. The central bank, which earlier crushed yuan bears with a range of measures, now now believe the currency’s climb has been too sharp. On Monday, it scrapped two rules intended to strength the yuan. The following table shows rates for Asian currencies against the dollar at 0450 GMT. CURRENCIES VS U.S. DOLLAR Currency Latest bid Previous day Pct Move Japan yen 110.10 110.16 +0.05 Sing dlr 1.3459 1.3473 +0.10 Taiwan dlr 30.031 30.030 -0.00 Korean won 1127 1128.5 +0.16 Baht 33.080 33.109 +0.09 Peso 50.910 50.905 -0.01 Rupiah 13205 13190 -0.11 Rupee 64.01 64.04 +0.05 Ringgit 4.198 4.206 +0.19 Yuan 6.529 6.5362 +0.12 Change so far in 2017 Currency Latest bid End 2016 Pct Move Japan yen 110.10 117.07 +6.33 Sing dlr 1.3459 1.4490 +7.66 Taiwan dlr 30.031 32.279 +7.49 Korean won 1127 1207.70 +7.19 Baht 33.080 35.80 +8.22 Peso 50.910 49.72 -2.34 Rupiah 13205 13470 +2.01 Rupee 64.005 67.92 +6.12 Ringgit 4.198 4.4845 +6.82 Yuan 6.529 6.9467 +6.40 (Reporting By Christina Martin in Bengaluru; Editing by Eric Meijer)

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