* Strong Malaysia Feb trade data supports ringgit more
* Won turns firmer on foreign stock buying, exporters
(Adds text, updates prices)
By Jongwoo Cheon
SINGAPORE, April 6 (Reuters) – Malaysia’s ringgit led gains
among emerging Asian currencies on Wednesday as a rebound in oil
prices helped risky assets including regional equities recover
some of the previous session’s losses.
Most emerging Asian currencies started the day weaker as
growing concerns over global economic recovery hurt risk
appetites.
The U.S. trade deficit widened more than expected in
February, indicating growth weakened further in the first
quarter. Also, International Monetary Fund Managing Director
Christine Lagarde said global growth is fragile and weak.
While China’s service sector strengthened in March,
employment fell for the first time in more than 2-1/2 years, a
private survey showed.
However, regional currencies changed direction as crude
futures extended gains on hopes for an agreement among oil
exporters to freeze output.
“We are cautious for potential short-term noise in the
lead-up to the oil producers’ meeting on April 17. That could
lift USD/Asia FX,” said Christopher Wong, senior FX strategist
for Maybank in Singapore, referring to gathering of crude
exporters in Qatar.
“But this is likely to be temporary and we see opportunity
to add short USD/Asia FX positions.”
Most emerging Asian currencies have risen so far this year
as the U.S. Federal Reserve is seen as cautious on raising
interest rates.
RINGGIT
The ringgit found further support from
stronger-than-expected Malaysia trade data and hit a session
high of 3.8950 per dollar.
Malaysia’s exports in February rose 6.7 percent from a year
earlier, more than double economists’ forecast for 3.1 percent
growth, thanks to higher shipments of electrical and electronic
products.
WON
South Korea’s won started the day softer,
tracking earlier weakness in global risky assets.
The won reversed the losses as foreign investors turned into
net buyers of Seoul shares and on exporters’ demand for
settlements. That caused offshore funds to unwind bearish bets
on the won.
Still, traders stayed wary of possible dollar demand
stemming from dividend payments by local companies to foreign
shareholders.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0540 GMT
Currency Latest bid Previous day Pct Move
Japan yen 110.31 110.35 +0.04
Sing dlr 1.3533 1.3552 +0.14
Taiwan dlr 32.470 32.378 -0.28
Korean won 1154.17 1155.10 +0.08
*Baht 35.30 35.30 0.00
Peso 46.205 46.260 +0.12
Rupiah 13213 13215 +0.02
Rupee 66.63 66.46 -0.26
Ringgit 3.9100 3.9245 +0.37
Yuan 6.4768 6.4756 -0.02
Change so far in 2016
Currency Latest bid End prev year Pct Move
Japan yen 110.31 120.30 +9.06
Sing dlr 1.3533 1.4177 +4.76
Taiwan dlr 32.470 33.066 +1.84
Korean won 1154.17 1172.50 +1.59
Baht 35.30 36.00 +1.98
Peso 46.21 47.06 +1.85
Rupiah 13213 13785 +4.33
Rupee 66.63 66.15 -0.72
Ringgit 3.9100 4.2935 +9.81
Yuan 6.4768 6.4936 +0.26
* Thai financial markets are closed for a holiday.
(Editing by Richard Borsuk)
