Philippine PesoEMERGING MARKETS-S.Korea’s won and Philippine peso rise, U.S. inflation in focus

adminOctober 20, 2021
    * S.Korea's won firms nearly 0.5%
    * Philippine peso, Singapore dollar appreciate
    * Singapore's MAS to make no changes to policy - Reuters
    * U.S. Sept inflation data awaited

    By Sameer Manekar
    Oct 13 (Reuters) - South Korea's won and Philippine peso
appreciated modestly on Wednesday as the U.S. dollar eased
slightly from its near one-year highs as markets awaited U.S.
inflation numbers, while most other Asian currencies treaded
    The U.S. dollar is being supported at its near one-year
highs on expectations that the U.S. Federal Reserve would begin
tapering stimulus next month, as rising oil prices and an energy
crisis in China fuel inflation concerns. 
    The dollar index, which measures the greenback
against six rivals, eased marginally to 94.363 from Tuesday,
when it touched 94.563 for the first time since late September
    Investor focus turns to the U.S. September inflation numbers
in the wake of mounting inflationary pressures to gauge the
Fed's policy, with markets keeping an eye on a
quicker-than-expected tightening.
    "Expectations are for U.S. core inflation rate to remain
elevated at 4% year-on-year, with any outperformance potentially
providing further strength for the dollar," Yeap Jun Rong, a
market strategist at IG said in a note.
    "The overall risks to markets may be a quicker-than-expected
pullback in monetary policy support, and the inflation data will
be looked upon for confirmation."
    In Asia, South Korea's won appreciated nearly
0.5% to mark its best day since mid-September, recovering from
its 0.4% drop in the previous session, while equities
jumped more than 1% after a sharp 1.4% decline the prior day.

    Among other currencies, the Philippine peso firmed
0.3%, Singapore dollar added 0.2% a day ahead of the
third-quarter preliminary economic growth data, while Malaysia's
ringgit logged modest gains.
    In Singapore, preliminary data is expected to show that the
city-state's economy grew 6.6% on year, versus 14.7% in the
prior quarter, according to a Reuters poll.
    The Monetary Authority of Singapore (MAS), which manages
policy via exchange rate settings rather than interest rates,
letting the Singapore dollar rise or fall within an undisclosed
band, is expected to make no changes to its policy, the Reuters
poll showed.
    However, analysts at Singapore-bank DBS expect the MAS to
"replace the zero-appreciation path of the Singapore dollar
nominal effective exchange rate policy band with a modest and
gradual appreciation path", adding that the local dollar will
continue to follow the rising U.S. dollar trend.
    Equities in the region were largely in the positive, with
shares in Jakarta jumping nearly 2% to hit a more than
two-year peak, while Singapore's Straits Times soared
1.45% to hit a near two-month high.
    Shares in Kuala Lumpur and Manila advanced up to
0.7% each, while Taiwan's benchmark lost initial gains
to slip about 0.8%, its third negative session in a row.
    Markets in Thailand, were closed for a
    ** Indonesian 10-year benchmark yields falls 2.3 basis
points to 6.349%
    ** U.S. 10-year Treasury yields edges higher to 1.5838%
    ** China Sept export growth unexpectedly picks up -

  Asia stock indexes and                            
 currencies at   0351 GMT                      
                     DAILY   YTD     X      S  S YTD
                         %     %        DAILY      %
 Japan               +0.15  -8.9  <.N2  -0.13  2.73
                               8  25>          
 China    <CNY=CFX   +0.02  +1.2  <.SS  -0.35   1.77
          S>                   8  EC>          
 India                0.00  -3.2  <.NS   0.00  28.68
                               4  EI>          
 Indones             -0.02  -1.2  <.JK   0.57   9.10
 ia                            5  SE>          
 Malaysi             +0.14  -3.3  <.KL   0.43  -2.24
 a                             0  SE>          
 Philipp             +0.40  -5.1  <.PS  -0.13  -0.58
 ines                          7  I>           
 S.Korea  <KRW=KFT   +0.42  -9.0  <.KS   1.04   2.55
          C>                   1  11>          
 Singapo             +0.18  -2.4  <.ST   1.41  10.98
 re                            7  I>           
 Taiwan              +0.04  +1.2  <.TW  -0.55  11.13
                               1  II>          

 (Reporting by Sameer Manekar in Bengaluru; Editing by Stephen