Breaking News

EM ASIA FX-Asian currencies subdued, US tax reform plans in focus

ForexNov 09, 2017 11:10
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. EM ASIA FX-Asian currencies subdued, US tax reform plans in focus

(Adds text, updates prices)

By Patturaja Murugaboopathy

Nov 9 (Reuters) - Asian currencies were shackled on Thursday as investors pondered the impact on the dollar stemming from potential delays to U.S. President Donald Trump's major tax reform plans.

Those considerations, along with an absence of catalysts, kept most regional currencies subdued. The dollar hardly budged either, last fetching 94.926 .DXY versus a basket of six major currencies, up 0.1 percent on the day.

There was little "tier-1 data" to drive regional currencies, said Christopher Wong, senior FX strategist for Maybank.

A U.S. Senate tax-cut bill, differing from one in the House of Representatives, was expected to be unveiled on Thursday, complicating a Republican tax overhaul push and increasing scepticism on Wall Street about the effort. Asian currencies will remain susceptible to the headlines on the U.S. tax bill, said Qi Gao, Asia FX Strategist at Scotiabank in a report.

The dollar stands to lose ground if the Senate tax bill delays plans to cut corporate taxes by one year, he said.

The Indian rupee INR=IN was supported by some dollar selling by exporters and IPO-related inflows, taking some pressure off the currency from higher oil prices.

Indian companies have raised about $8 billion from IPOs in India so far in what is set to be a record year. The recent HDFC Standard Life Insurance Co. Ltd's IPO will be the fourth to raise more than a billion dollars in 2017.

So far this month, foreigners have bought about $700 million in Indian equity markets.

It was a different story for the Philippine peso PHP=PDSP , which was kept in check by corporate demand for dollars and stock sales by foreigners, traders said.

On the policy front, central banks in Malaysia and the Philippines will meet to review rates later in the day and most analysts expect them to stand pat.

Markets will keep a close watch on the policy statement from the two central banks as they are expected to be among the first in the region to hike rates next year, said Bank of Tokyo-Mitsubishi UFJ said in a research note.

The Thai central bank left its policy interest rate unchanged on Wednesday. Indonesian rupiah IDR=ID was trading flat ahead of the release of current account data for the third quarter.

Indonesia had a deficit of $5.0 billion in its total foreign trade in goods and services in the second quarter, equal to 1.96 percent of gross domestic product. yuan CNY=CFXS inched up, supported in part by better-than-expected inflation data. following table shows rates for Asian currencies against the dollar at 0452 GMT.


Change on the day

at 0452 GMT


Latest Previous Pct Move



Japan yen



+0.02 Sing dlr



-0.01 Taiwan dlr



+0.04 Korean won



+0.15 Baht



-0.04 Peso



+0.06 Rupiah



+0.02 Rupee



+0.12 Ringgit



+0.02 Yuan




Change so far in



Latest End 2016

Pct Move


Japan yen



+2.84 Sing dlr



+6.41 Taiwan dlr



+6.97 Korean won



+8.42 Baht



+8.08 Peso



-3.02 Rupiah



-0.31 Rupee



+4.70 Ringgit



+6.09 Yuan




EM ASIA FX-Asian currencies subdued, US tax reform plans in focus

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Write your thoughts here
Replace the attached chart with a new chart ?
Post also to:
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email