* China to impose RRR for some banks in offshore yuan market
* Foreigners sell Taiwan dlr after opposition wins elections
* Ringgit near 2-week low, rupiah falls
* Won up on stop-loss dlr selling, suspected intervention
(Adds text, updates prices)
By Jongwoo Cheon
SINGAPORE, Jan 18 (Reuters) – Most emerging Asian currencies
rose on Monday as China stepped up efforts to stabilise the
yuan, while regional commodity units such as the Malaysian
ringgit slid on another tumble in global oil prices.
The Taiwan dollar rebounded from a near seven-year
low. Foreign investors, however, sold the currency after the
island’s independence-leaning opposition leader won Saturday’s
presidential election, raising fears of escalating tensions with
China.
China’s yuan gained as the central bank said it
would start implementing a reserve requirement ratio for some
banks involved in the offshore renminbi market, the latest move
to stem speculation in the currency and manage fund flows.
A stronger yuan helped regional peers including the South
Korean won and the Singapore dollar turn
firmer. The ringgit pared some of its earlier losses.
Still, emerging Asian currencies are likely to stay under
pressure as crude prices fell as much as 4 percent with
international benchmark Brent at the lowest since 2003.
That raised concerns over a slowing global economy.
“While the uncertainty from the yuan is temporarily removed,
other Asian currencies could still weaken further on their own
factors such as low oil prices,” said Qi Gao, an emerging Asian
currency strategist for Scotiabank in Hong Kong.
The ringgit fell to its weakest in nearly two weeks as
sliding crude prices underscored worries about Malaysia’s
falling oil and gas revenue.
Indonesia’s rupiah, another commodity currency in
the region, also weakened.
TAIWAN DOLLAR
The Taiwan dollar strengthened, tracking a stronger yuan.
Gains in the island’s currency were limited as foreign
investors continued to cut holdings in the unit. Local importers
also bought the U.S. dollar for payments.
Tsai Ing-wen and her Democratic Progressive Party won a
convincing victory in both presidential and parliamentary
elections.
After the elections, China’s state-run media said Taiwan
should abandon “hallucinations” about pushing for independence,
as any moves towards it would be a “poison”.
Even before the vote, the Taiwan dollar on Friday ended the
local trade at T$ 33.802 per the U.S. dollar, its weakest since
April 2009 on concerns over geopolitical instability.
Bearish views on the island’s economy also clouded the
Taiwan dollar’s outlook.
Orders for exports were expected to fall for the ninth
straight month in December due to a slowdown in Chinese and
global demand, a Reuters poll showed.
WON
The won started the day weaker and fell to as low as 1,216.8
per dollar, its weakest since July 2010, as falling oil prices
dampened risk sentiment. Foreign investors continued to sell
Seoul shares.
The South Korean currency turned firmer as the yuan’s rise
prompted stop-loss dollar selling.
Local foreign exchange authorities were also suspected of
intervening to stem further losses in the worst-performing Asian
currency so far this year, traders said.
RINGGIT
Spot ringgit lost as much as 0.5 percent to 4.4170 per
dollar, its weakest since Jan. 7.
Leveraged funds earlier sold the currency in the
non-deliverable forwards, hurting the spot.
The ringgit pared some of earlier losses on the yuan’s
strength and as some long-term funds bought the Malaysian unit
with government bond prices higher.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0555 GMT
Currency Latest bid Previous day Pct Move
Japan yen 117.20 117.10 -0.09
Sing dlr 1.4386 1.4395 +0.06
Taiwan dlr 33.572 33.802 +0.69
Korean won 1211.03 1213.40 +0.20
Baht 36.31 36.36 +0.13
Peso 47.75 47.74 -0.02
Rupiah 13925.00 13890.00 -0.25
Rupee 67.56 67.60 +0.05
Ringgit 4.4080 4.3965 -0.26
Yuan 6.5788 6.5840 +0.08
Change so far in 2016
Currency Latest bid End prev year Pct Move
Japan yen 117.20 120.30 +2.65
Sing dlr 1.4386 1.4177 -1.45
Taiwan dlr 33.572 33.066 -1.51
Korean won 1211.03 1172.50 -3.18
Baht 36.31 36.00 -0.85
Peso 47.75 47.06 -1.45
Rupiah 13925.00 13785.00 -1.01
Rupee 67.56 66.15 -2.09
Ringgit 4.4080 4.2935 -2.60
Yuan 6.5788 6.4936 -1.30
(Additional reporting by Liang-Sa Loh in TAIPEI and IFR
Markets’ Catherine Tan; Editing by Richard Borsuk)
