EM ASIA FX-China stock woes hurt Asia FX, Vietnam devalues currency again
* Yuan slides as China shares extend losses
* Vietnam devalues dong for third time this year
* Ringgit around 17-year low in thin liquidity
* Baht hits 6-year trough, stock outflows at 1-1/2-year high
(Adds text, updates prices)
By Jongwoo Cheon
SINGAPORE, Aug 19 (Reuters) - Most emerging Asian currencies
eased on Wednesday, hurt by a continuing rout in China's stock
markets, while jitters grew before U.S. inflation data and
minutes of the Federal Reserve's last policy review are
published.
China shares dropped again, extending Tuesday's 6 percent
loss, as investors dumped shares across the board amid deepening
worries that the government could be phasing out its rescue
efforts. The yuan also slid, while broadly flat
official guidance checked its downside.
The Vietnamese dong fell on the unofficial market
after the country devalued the currency for the third time this
year to support exports.
Malaysian's ringgit stayed around a pre-peg 17-year
low in slow trade on weak commodity prices.
The Thai baht hit a six-year trough as foreign
investors on Tuesday reported their largest stock selling in
more than 1-1/2 years after a bomb blast on Monday.
"Tumbling Chinese stocks, along with the Fed's rate increase
expectations, could spur capital outflows further from emerging
Asia amid growing concerns over sluggish economies," said Yuna
Park, a currency and bond analyst at Dongbu Securities in Seoul.
Investors were awaiting U.S. July consumer inflation data
and minutes of the Fed's July policy meeting to gauge if the
U.S. central bank will raise interest rates as soon as next
month.
RINGGIT
The ringgit started the day firmer as the dollar
broadly eased against a basket of six major currencies on
position adjustments.
The Malaysian currency, however, turned weaker to touch
4.1075 per dollar. That compared with Friday's low of 4.1500,
its weakest since Sept 1. 1998. Malaysia pegged the ringgit at
3.8000 from September 1998 until 2005.
Crude prices resumed their slide, highlighting concerns over
export performance. Malaysia is a major supplier of natural
liquefied gas and palm oil.
Malaysia's consumer prices rose 3.3 percent in July from a
year earlier, faster than expected.
Still, thin liquidity kept investors from taking fresh
positions.
A senior Malaysian bank trader said currency trading volume
shrank to about 20 percent of past levels.
BAHT
The baht eased 0.2 percent to 35.625 per dollar, its weakest
since April 2009.
Foreign investors on Tuesday sold a net 6.9 billion baht
($193.7 million) worth of Thai shares, the largest daily selling
since December 2014.
The selloff followed the explosion in Bangkok which killed
22 people, spurring fears the attack will hurt tourism, one of
the few bright spots in the economy.
RUPIAH
The rupiah edged down as local and foreign banks sold it
amid lower government bond prices.
The Indonesian currency pared much of its earlier losses as
the central bank was spotted intervening to support the
currency, traders said.
On Tuesday, Bank Indonesia deputy governor Perry Warjiyo
said the central bank is "desperately defending" the rupiah in
the market.
The monetary authority will tighten controls on the purchase
of the dollars over the counter, said Governor Agus
Martowardojo, in a move to stabilise the second-worst performing
Asian currency so far this year.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0516 GMT
Currency Latest bid Previous day Pct Move
Japan yen 124.32 124.41 +0.07
Sing dlr 1.4038 1.4035 -0.02
Taiwan dlr 32.454 32.653 +0.61
Korean won 1183.90 1185.00 +0.09
Baht 35.62 35.56 -0.17
Peso 46.34 46.36 +0.04
Rupiah 13835.00 13813.00 -0.16
Rupee 65.28 65.32 +0.05
Ringgit 4.1070 4.0890 -0.44
Yuan 6.3991 6.3938 -0.08
Change so far in 2015
Currency Latest bid End prev year Pct Move
Japan yen 124.32 119.66 -3.75
Sing dlr 1.4038 1.3260 -5.54
Taiwan dlr 32.454 31.718 -2.27
Korean won 1183.90 1099.30 -7.15
Baht 35.62 32.90 -7.64
Peso 46.34 44.72 -3.49
Rupiah 13835.00 12380.00 -10.52
Rupee 65.28 63.03 -3.45
Ringgit 4.1070 3.4965 -14.86
Yuan 6.3991 6.2040 -3.05
($1 = 35.62 baht)
(Additional reporting by IFR Markets' Catherine Tan; Editing by
Eric Meijer)