* Ringgit up on oil, China investment plan
* Won gains on equity inflows, exporters
(Adds text, updates prices)
By Jongwoo Cheon
SEOUL, March 22 (Reuters) – Most emerging Asian currencies
firmed on Tuesday, shrugging off a bounce in the dollar as
investors remained doubtful the U.S. Federal Reserve will raise
interest rates soon.
Malaysia’s ringgit hit its strongest in more than
seven months after oil prices rose overnight, while South
Korea’s won gained thanks to stock inflows.
Regional units had slipped briefly in early trade after two
Fed officials backed the case for a rate increase sooner rather
than later.
Atlanta Fed President Dennis Lockhart said there was
sufficient economic momentum to justify a further rate hike
“possibly as early as the meeting scheduled for end of April”.
San Francisco Federal Reserve Bank President John Williams
told Market News International that April or June would be
“potential times for a rate hike.”
“They opened the door for an April hike but I wonder if that
is really possible as things will not change in a month,” said
Yuna Park, currency and bond analyst at Dongbu Securities in
Seoul.
“Today, there were just some corrections after overshooting.
Emerging Asian currencies are likely to stay firm until we see
more clear signs on a U.S. tightening and Brexit,” Park added,
referring to fears that Britain may exit the European Union.
Britons will vote in an in-out referendum in June.
RINGGIT
The ringgit gained as much as 1.2 percent to 4.0100 per
dollar, its strongest since Aug. 13.
Long-term foreign investors bought the Malaysian currency as
rising crude prices eased concerns over the country’s oil and
gas revenues.
The currency found further support from a report that China
Railway Group plans to spend $ 2 billion to
build a regional headquarters in Malaysia as a base for
expansion into Southeast Asia.
WON
The won rose on demand from South Korea’s exporters and
equity inflows.
Foreign investors were set to become net buyers in the main
local stock market for a ninth straight session. They
have absorbed a combined net 2.2 trillion won ($ 1.9 billion) in
shares during the period, the Korea Exchange data showed.
Such demand caused offshore funds to scramble for the won to
stop losses.
“Offshore names kept dumping dollar holdings, which they had
built up before. That broke supply and demand balance in the
market,” said a foreign bank trader in Seoul.
Caution grew over possible intervention by the foreign
exchange authorities to stem the won’s strength.
The South Korean currency has risen 7.1 percent against the
dollar so far this month, which would be the largest monthly
gain since April 2009, according to Thomson Reuters data.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0525 GMT
Currency Latest bid Previous day Pct Move
Japan yen 112.04 111.96 -0.07
Sing dlr 1.3588 1.3597 +0.07
Taiwan dlr 32.4230 32.545 +0.38
Korean won 1154.60 1163.50 +0.77
Baht 34.89 34.89 +0.00
Peso 46.26 46.33 +0.15
Rupiah 13155 13130 -0.19
Rupee 66.53 66.525 -0.01
Ringgit 4.0150 4.0575 +1.06
Yuan 6.4927 6.4900 -0.04
Change so far in 2016
Currency Latest bid End prev year Pct Move
Japan yen 112.04 120.30 +7.37
Sing dlr 1.3588 1.4177 +4.33
Taiwan dlr 32.423 33.066 +1.98
Korean won 1154.60 1172.50 +1.55
Baht 34.89 36.00 +3.18
Peso 46.26 47.06 +1.73
Rupiah 13155 13785 +4.79
Rupee 66.53 66.15 -0.57
Ringgit 4.0150 4.2935 +6.94
Yuan 6.4927 6.4936 +0.01
($ 1 = 1,154.29 won)
(Additional reporting by Yena Park; Editing by Kim Coghill)
