google news nz: EM ASIA FX-Fading stimulus hopes spur profit-taking

* Won down as foreigners turn to net stock sellers

* Sing dlr dips on intervention talk, weak data

* Profit-taking weighs on ringgit, baht

(Adds text, updates prices)

By Jongwoo Cheon

SINGAPORE, Aug 24 (Reuters) - Emerging Asian currencies fell

on Friday as investors scaled back expectations of a strong

stimulus from the U.S. Federal Reserve and booked profits from

gains made this week.

The South Korean won declined the most as traders

increased their dollar holdings, with foreigners turning to net

sellers in the country's main stock market.

The Singapore dollar eased as growth concerns

returned to the fore after the city-state reported weak

industrial production in July. Talk of a possible intervention

by the central bank to slow down the currency's appreciation

dragged it down further.

The Thai baht and the Malaysian ringgit

were both weaker as interbank speculators booked profits from

gains made earlier in the week.

Hopes of policy measures dimmed in Asian shares and currency

markets after James Bullard, a top Fed official, said U.S. data

had been somewhat better since early August and the Fed's July

31-Aug. 1 minutes, which had indicated a third round of monetary

stimulus, or quantitative easing (QE3), might be in store, were

"a bit stale."

"Markets appeared to have already priced in hopes about QE,"

said a senior Thai bank dealer in Bangkok, adding he expected

more profit-taking in regional units next week.

Investors are keeping an eye on the annual informal

conference of central bankers and economists at Jackson Hole,

Wyoming at the end of this month when Fed Chairman Ben Bernanke

will give a speech.

"The expectation is always on and off," Enrico Tanuwidjaja,

an Asia economist at the Royal Bank of Scotland in Singapore,

said, when asked about the possibility of quantitative easing.

Most emerging Asian currencies were on course to finish the

week higher, despite the profit taking,.

The ringgit was the best performer for the week with a 0.9

percent gain against the dollar, Thomson Reuters data showed.

Investors chased the Malaysian currency versus the Singapore

dollar with the city-state's unit under pressure from

intervention talk, dealers said. The ringgit on Friday hit

2.4754 to the neighboring local unit, its strongest since June

18.

Malaysian exporters and interbank speculators also bought

the ringgit, according to traders.

The baht has risen 0.8 percent to the greenback so far this

week and the Indian rupee has gained 0.6 percent,

according to Thomson Reuters data.

WON

The won slid as interbank speculators added dollar

positions, scaling back expectations of the Fed's more stimulus.

Seoul shares also shed with foreign investors

turning to net sellers by unloading a net 251.9 billion won

($222.81 million) after a 13th consecutive session of net

purchases.

But the South Korean currency recovered some of initial

slide as domestic exporters including shipbuilders bought it for

settlements.

A foreign bank dealer in Seoul expects the local unit to

find more support next week as more exporters are likely to buy

the won for month-end settlements, saying "the won may see 1,125

(per dollar)".

SINGAPORE DOLLAR

The Singapore dollar eased amid market talk that

agent banks of Monetary Authority of Singapore placed U.S.

dollar bids at 1.2460 per dollar.

The city-state's currency came under more pressure after

July industrial production was much weaker than expected.

Singapore July industrial production rose 1.9 percent from a

year earlier, well below market forecast of a 6.7 percent

growth, data showed.

BAHT

The baht weakened past a 200-day moving average,

which currently stands at 31.219 per dollar, in thin trading as

traders covered short dollar positions.

On Thursday, the Thai currency hit 31.150, its strongest

since May 11, strengthening past the average.

But a Thai bank dealer said the baht would find support from

bond inflows.

"We still see a lot of offshore flows selling dollar/baht.

If this flows continue, it wouldn't be very hard to test 31.000

next week," the dealer added.

RINGGIT

The ringgit barely changed, although local traders took

profits from the Malaysian currency before a weekend.

But interbank speculators hesitated to sell the Malaysian

unit further as the euro held steady near seven-week highs

against the dollar.

"The euro zone landscape has changed as they are doing

everything," said a Malaysian bank dealer in Kuala Lumpur.

If the euro extends rise above 1.2600 per dollar, the

ringgit would head to 3.0800, the dealer added.

CURRENCIES VS U.S. DOLLAR

Change on the day at 0640 GMT

Currency Latest bid Previous day Pct Move

Japan yen 78.59 78.48 -0.14

Sing dlr 1.2510 1.2476 -0.27

Taiwan dlr 29.957 29.960 +0.01

Korean won 1134.00 1130.50 -0.31

Baht 31.23 31.18 -0.16

Peso 42.21 42.11 -0.24

Rupiah 9495.00 9490.00 -0.05

Rupee 55.40 55.26 -0.25

Ringgit 3.1010 3.0960 -0.16

Yuan 6.3540 6.3535 -0.01

Change so far in 2012

Currency Latest bid End prev year Pct Move

Japan yen 78.59 76.92 -2.13

Sing dlr 1.2510 1.2969 +3.67

Taiwan dlr 29.957 30.290 +1.11

Korean won 1134.00 1151.80 +1.57

Baht 31.23 31.55 +1.02

Peso 42.21 43.84 +3.86

Rupiah 9495.00 9060.00 -4.58

Rupee 55.40 53.08 -4.19

Ringgit 3.1010 3.1685 +2.18

Yuan 6.3540 6.2940 -0.94

($1 = 1130.5750 Korean won)

(Additional reporting by IFR Markets' Catherine Tan, Editing by

Sanjeev Miglani)

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Asian currencies Asian currencies in Asia

Malaysian ringgit Indonesian rupiah

Singapore dollar Thai baht

Taiwan dollar Hong Kong dollar

Philippine peso Korean won

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Friday, August 24, 2012

EM ASIA FX-Fading stimulus hopes spur profit-taking

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