EM ASIA FX-Stock inflows lift Taiwan dollar; political tensions weaken baht
* Taiwan sees Abu Dhabi sovereign fund inflows -papers
* Baht supported at 100-day MA; stocks, bond rise
(Adds text, updates prices)
By Jongwoo Cheon
SINGAPORE, Nov 5 (Reuters) - The Taiwan dollar rose on stock
inflows on Tuesday, leading other most other emerging Asian
currencies in recovering ground after the U.S. Federal Reserve
said it was in no hurry to taper its monetary stimulus, but
political tensions in Thailand hurt the baht.
The Indian rupee also eased due to catch-up selling
after a holiday on Monday.
Emerging Asian currencies found some relief on Tuesday after
key Fed officials said the U.S. central bank is in no rush to
begin cutting its bond-buying programme.
In the previous session, regional units extended slides on
expectations that the U.S. Federal Reserve may start scaling
back its stimulus this year following the release of encouraging
economic data.
"Asian currencies would also be beholden to eventual
taper-induced greenback resilience," OCBC Bank said in a client
note.
"However, we are also cognizant of the fact that if the
Asian recovery gains sufficient traction in the coming quarters,
the regional units may begin to contemplate further resistance
to broad dollar dynamics."
Growth in China's service sector edged up in October, a
private survey showed, indicating further stabilisation in the
world's second-largest economy.
Investors hesitated to build up large positions in emerging
Asian currencies, partly due to caution ahead of the European
Central Bank meeting on Thursday and U.S. October jobs data due
on Friday.
TAIWAN DOLLAR
The Taiwan dollar rose as foreign financial
institutions bought Taiwanese stocks on dips in the market
.
Foreign investors purchased a combined net T$4.75 billion
($161.5 million) in the previous two consecutive sessions.
Some of the inflows to Taiwan came from an Abu Dhabi
sovereign wealth fund, according to the island's newspapers.
The Taiwan central bank was not seen intervening to stem the
local currency, but could push it lower at the close, traders
said.
BAHT
Offshore funds solde the Thai baht due to concerns
that political tensions could boil over as the government tries
to push through an amnesty bill that could herald the return of
former premier Thaksin Shinawatra from self-exile.
The Thai currency found support at a 100-day moving average
level of 31.333 per dollar, but remained under pressure due to
the political uncertainties, traders and analysts said.
"We are bearish THB and target 31.30 by the end of the year,
but note that our bearish view certainly allows for the risk of
an overshoot of our end of year target, particularly if
political tensions intensify," Scotiabank said in a client note.
A senior Thai bank trader in Bangkok said the baht may
weaken to 31.50 if protests against the bill turn violent.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0430 GMT
Currency Latest bid Previous day Pct Move
Japan yen 98.46 98.60 +0.14
Sing dlr 1.2424 1.2424 +0.00
Taiwan dlr 29.395 29.506 +0.38
Korean won 1061.50 1062.90 +0.13
Baht 31.28 31.25 -0.10
Peso 43.29 43.30 +0.03
*Rupiah 11345.00 11345.00 +0.00
*Rupee 61.82 61.74 -0.13
Ringgit 3.1715 3.1740 +0.08
Yuan 6.0964 6.0992 +0.05
Change so far in 2013
Currency Latest bid End prev year Pct Move
Japan yen 98.46 86.79 -11.85
Sing dlr 1.2424 1.2219 -1.65
Taiwan dlr 29.395 29.136 -0.88
Korean won 1061.50 1070.60 +0.86
Baht 31.28 30.61 -2.14
Peso 43.29 41.05 -5.16
Rupiah 11345.00 9630.00 -15.12
Rupee 61.82 54.99 -11.05
Ringgit 3.1715 3.0580 -3.58
Yuan 6.0964 6.2303 +2.20
* Financial markets in Indonesia and Malaysia are closed for
holidays.
($1 = 29.418 Taiwan dollars)
(Additional reporting by Jeanny Kao in TAIPEI; Editing by Simon
Cameron-Moore)