EM ASIA FX-Asia FX rise after Trump offers little clarity on fiscal plans


* Thai baht rises to its highest in nearly 2 months

* Asia stronger in the wake of Trump’s news conference

* Dollar slips after Trump offers no fiscal policy details

(Adds text, updates prices)

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, Jan 12 (Reuters) – Asian currencies rose broadly

on Thursday in the wake of U.S. President-elect Donald Trump’s

news conference, which offered little clarity on his future

fiscal policies and disappointed dollar bulls.

The Thai baht climbed to around 35.30 at

one point, its strongest since mid-November. Traders said the

baht rose due to short-covering, and was also supported by

inflows into Thai equities.

Most other Asian currencies rose, including the onshore

Chinese yuan, which gained 0.4 percent. The South

Korean won climbed 1.3 percent.

Trump, who takes office on Jan. 20, did not elaborate on his

pro-growth policies in a news conference on Wednesday, providing

no details on tax cuts and infrastructure spending.

Emerging Asian currencies could stay firm in the ,

given the possibility of further liquidation of long dollar

positions, said Satoshi Okagawa, senior global markets analyst

for Sumitomo Mitsui Banking Corporation in Singapore.

This is especially the case since many emerging Asian

currencies have relatively higher interest rates compared with

the dollar, he said.

“Keeping long positions in the dollar against emerging

market currencies or Asian currencies comes with a ,”

Okagawa said, adding that this can make harder to stick with

such bets if the chances of the dollar rising in the near term

seem low.

Asian currencies had retreated broadly after Trump’s

election win on Nov. 8, as U.S. bond yields jumped on

expectations that Trump’s proposals for infrastructure spending

and tax cuts would prop up U.S. economic growth and inflation.

Emerging Asian currencies have regained some ground this

month, after a short-covering rally in the offshore Chinese yuan

triggered some scaling back of bullish bets on the dollar.


Change on the day at 0420 GMT

Currency Latest bid Previous Pct

day Move

Japan yen 114.49 115.41 +0.80

Sing dlr 1.4277 1.4267 -0.07

Taiwan dlr 31.730 31.935 +0.65

Korean won 1181.00 1196.40 +1.30

Baht 35.35 35.56 +0.60

Peso 49.530 49.625 +0.19

Rupiah 13288 13328 +0.30

Rupee 68.10 68.33 +0.35

Ringgit 4.4600 4.4700 +0.22

Yuan 6.9117 6.9360 +0.35

Change so

far in 2017

Currency Latest bid End prev Pct

year Move

Japan yen 114.49 117.07 +2.25

Sing dlr 1.4277 1.4490 +1.49

Taiwan dlr 31.730 32.279 +1.73

Korean won 1181.00 1207.70 +2.26

Baht 35.35 35.80 +1.29

Peso 49.53 49.72 +0.38

Rupiah 13288 13470 +1.37

Rupee 68.10 67.92 -0.26

Ringgit 4.4600 4.4845 +0.55

Yuan 6.9117 6.9467 +0.51

(Reporting by Masayuki Kitano; Additional reporting by

Satawasin Staporncharnchai in , IFR Markets’ Catherine

Tan; Editing by Jacqueline Wong)


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