* 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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Source: http://news.yahoo.com/em-asia-fx-fading-stimulus-hopes-spur-profit-074800797--finance.html
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