* New Indian finmin says will focus on deficits and inflation * Ringgit dips on profit-taking, importers * Taiwan dollar up on exporters; intervention eyed (Adds text, updates prices) By Jongwoo Cheon SINGAPORE, May 27 (Reuters) - The Indian rupee led losses among emerging Asian currencies on Tuesday as investors took profits amid weaker regional stocks even though the European Central Bank chief Mario Draghi increased expectations of more monetary policy easing. The rupeeINR=D2 fell as India's new Prime Minister Narendra Modi named his cabinet, with some analysts seeing potential for policy conflict between ministers wanting faster economic growth and the Reserve Bank of India, which wants to tame inflation. Modi picked Arun Jaitley as finance minister, tasking his close party colleague with reviving investment in an economy that has been growing at its slowest in a decade.ID:nL3N0OD0RG Jaitley said that he would focus on bringing down fiscal deficits and tackling high inflation in Asia's third-largest economy.ID:nD8N0NU011 Credit Agricole CIB's senior economist and strategist Dariusz Kowalczyk, however, said Jaitley had said his priorities will include attracting foreign investment and lowering borrowing costs. "Such a stance is positive for INR asset prices but also indicates potential for conflict with the RBI," said Kowalczyk. "Thus, while attracting capital inflows, it also introduces uncertainty regarding FX policy, and is likely to initially be INR-negative," said Kowalczyk in Hong Kong. Helped by capital inflows in anticipation of Modi's victory, the rupee has risen 4.8 percent against the dollar so far this year, becoming the second-best performing Asian currency, according to Thomson Reuters data. The central bank has been spotted intervening to stem further appreciation in the currency, traders said. RBI data released on Monday showed India's current account deficit in the first quarter narrowed to $1.2 billion, or 0.2 percent of gross domestic product.ID:nI8N0ND03E The rupee's losses came as most emerging Asian currencies eased, tracking weaker stocks.ID:nL3N0OD00F ECB President Draghi on Monday continued to hint at coming measures, saying the central bank must be "particularly watchful" for any negative price spiral in the euro zone, and that "more pre-emptive action may be warranted."ID:nL6N0OC24U If the ECB eases monetary policy further, that will cause investors to seek higher-yielding assets in emerging Asian countries, analysts and traders have said. RINGGIT The ringgit turned weaker as local interbank speculators took profits around 3.2050 per dollar ahead of a psychological resistance at 3.2000. The Malaysian currency eased in non-deliverable forwardsMYRNDFOR= markets. Local importers also bought the dollar for month-end payments. Spot ringgit earlier rose on exporters' demand for month-end settlements. TAIWAN DOLLAR The Taiwan dollar rose on exporters' demand for month-end settlements around 30.110 against the U.S. dollar. Domestic importers, however, bought the greenback around 30.070-30.080, limiting the Taiwan dollar's gains. A trader in Taipei suspected the central bank of intervening around the level to stem the Taiwan dollar's gains. Some foreign financial institutions also purchased the U.S. dollar, although the demand was not that strong, traders said. BAHT The baht edged up in thin trading as Bangkok shares.SETI rose while most Southeast Asian stocks eased. Concerns over political instability in the wake of the military coup kept investors, especially foreigners, cautious.ID:nL3N0OC321 Foreign investors had been net sellers in the local stock market since May 20, when the army first imposed martial law prior to seizing full control. They dumped a net 23.4 billion baht ($717.8 million) worth of stocks during the period, according to Thomson Reuters data. Five- and 10-year government bond yieldsTH5YT=RR TH10YT=RR rose. The military government is expected to announce its economic plans next week. CURRENCIES VS U.S. DOLLAR Change on the day at 0445 GMT Currency Latest bid Previous day Pct Move Japan yen 101.94 101.94 +0.00 Sing dlr 1.2548 1.2532 -0.13 Taiwan dlr 30.110 30.160 +0.17 Korean won 1023.30 1024.00 +0.07 Baht 32.56 32.59 +0.08 Peso 43.73 43.67 -0.14 Rupiah 11575.00 11575.00 +0.00 Rupee 58.98 58.71 -0.46 Ringgit 3.2125 3.2105 -0.06 Yuan 6.2420 6.2392 -0.04 Change so far in 2014 Currency Latest bid End prev year Pct Move Japan yen 101.94 105.28 +3.27 Sing dlr 1.2548 1.2632 +0.67 Taiwan dlr 30.110 29.950 -0.53 Korean won 1023.30 1055.40 +3.14 Baht 32.56 32.86 +0.92 Peso 43.73 44.40 +1.52 Rupiah 11575.00 12160.00 +5.05 Rupee 58.98 61.80 +4.78 Ringgit 3.2125 3.2755 +1.96 Yuan 6.2420 6.0539 -3.01 * Financial markets in Indonesia are closed for a holiday. ($1 = 32.60 baht) (Additional reporting by Jeanny Kao in TAIPEI; Editing by Simon Cameron-Moore) ((jongwoo.cheon@thomsonreuters.com)(+65 6870-3841)(Reuters Messaging: jongwoo.cheon.thomsonreuters.com@reuters.net)) ((For the new Reuters scrolling global forex service please clickFXNEWS ((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra : visithttp://topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News, please visithttp://topnews.reuters.com )) Double click on brackets for following items: Asian currenciesAFX= Asian currencies in AsiaAFX=A Malaysian ringgitMYRX= Indonesian rupiahIDRX= Singapore dollarSGDX= Thai bahtTHBX= Taiwan dollarTWDX= Hong Kong dollarHKDX= Philippine pesoPHP= Korean wonKRW= SPEED GUIDESMONEY ASEAN= Exotic currenciesEXOTIC/1 Non-G7 currenciesCCY/1 RELATED NEWS AND OTHER TOPICS All Singapore newsSG All Malaysian newsMY ThailandTH IndonesiaID Hong KongHK TaiwanTW PhilippinesPH KoreaKR All emerging marketsEMRG All foreign exchange newsFRX Foreign exchange technical analysisFRX&INSI )) Keywords: MARKETS ASIA FOREX/
EM ASIA FX-Rupee leads Asia FX slide on profit-taking
* New Indian finmin says will focus on deficits and inflation * Ringgit dips on profit-taking, importers * Taiwan dollar up on exporters; intervention eyed (Adds text, updates prices) By Jongwoo Cheon SINGAPORE, May 27 (Reuters) - The Indian rupee led losses among emerging Asian currencies on Tuesday as investors took profits amid weaker regional stocks even though t
May 27, 2014




















