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EM ASIA FX-Philippine peso dips before c.bank rate meeting; Fed, U.S. GDP caution grows

* BSP tightening views seen priced in to some degree

* Baht down on disappointing factory output data

* Won, Taiwan dollar firm on exporters

(Adds text, updates prices)

By Jongwoo Cheon

SINGAPORE, July 30 (Reuters) - The Philippine peso edged

down on Wednesday as investors took profits a day before a

monetary policy meeting, and as emerging Asia currencies in

general came under pressure from concerns that the U.S. Federal

Reserve may move to a hawkish policy stance.

The Philippine central bank is expected to tighten policy

for the fourth straight meeting on Thursday to tackle

inflationary pressures, by raising either its main overnight

borrowing rate or the rate of the rate on its special deposit

accounts (SDAs).

The peso eased as much as 0.2 percent to 43.46

per dollar, its weakest since July 21, as traders said

expectations of tightening have been priced in to some degree.

Dollar demand from local companies also hurt the Philippine

currency, traders said.

"That event has been mostly factored in," said a senior

Philippine bank trader in Manila.

"A minority camp said no hike, given expectations of weak Q2

growth. If that is correct, the market may be primed for

disappointment," said the trader, adding the peso may weaken to

test 43.70 in case of missing expectations.

The Philippine currency has been stronger than that level so

far this month.

The peso has risen about 1 percent since June 19 when the

central bank tightened policy for the third straight meeting by

raising the SDA rate in a bid to contain liquidity growth and

curb price pressures.

Despite Wednesday's dip, the peso is likely to strengthen if

the Bangko Sentral ng Pilipinas (BSP) raises the main rate

this week, analysts and traders said.

"After raising special deposit rate last month, the BSP is

poised to lift its benchmark rate," said Andy Ji, Asian currency

strategist for Commonwealth Bank of Australia in Singapore.

"Real interest rates are one of the lowest in the region

with inflation running uncomfortably high. A long overdue hike

will support the peso," Ji said, expecting the currency would

strengthen to 42.50 by year-end.

Still, analysts and traders doubted how much the peso would

appreciate further given caution over the Fed's eventual policy

rate hike.

The U.S. central bank is all but certain to cut its monthly

bond-buying programme by another $10 billion later in the day.

The focus has already shifted to when it will start to lift

interest rates, even though this week's meeting will conclude

with only a statement without a news conference.

The dollar stayed firm against a basket of major six

currencies on expectations of a strong second-quarter growth in

the U.S. economy and some hints on the Fed's rate policy.

"H2 will be difficult for Asian EM FX due to a firmer USD

tone in global markets and higher UST yields. The peso will be

one of the currencies facing headwinds," said Dariusz Kowalczyk,

a senior economist and strategist for Credit Agricole CIB in

Hong Kong.

RINGGIT

The Malaysian ringgit eased in thin trading as

traders covered dollar short positions before the outcome of the

Fed policy meeting.

A senior Malaysian bank trader said the ringgit may weaken

to 3.1900 per dollar on expectations of a hawkish stance by the

U.S. central bank.

Still, the trader said such depreciation could be a chance

to buy the ringgit on dips, expecting more fund inflows into

higher economic growth.

BAHT

The Thai baht dipped as factory output in June fell

more than expected, indicating the economy keeps struggling to

regain traction.

Bangkok shares fell 0.9 percent, underperforming

most of regional equity markets.

WON, TAIWAN DOLLAR

The South Korean won and the Taiwan dollar

rose on demand from exporters for month-end

settlements.

The won found further support as foreign investors continued

to buy Seoul shares.

The Singapore dollar also edged up on month-end

corporate demand and as the Chinese yuan turned

higher.

CURRENCIES VS U.S. DOLLAR

Change on the day at 0445 GMT

Currency Latest bid Previous day Pct Move

Japan yen 102.08 102.12 +0.04

Sing dlr 1.2421 1.2429 +0.06

Taiwan dlr 29.944 30.005 +0.20

Korean won 1022.50 1024.40 +0.19

Baht 31.85 31.81 -0.13

Peso 43.40 43.36 -0.09

*Rupiah 11575.00 11575.00 +0.00

Rupee 60.17 60.13 -0.07

Ringgit 3.1790 3.1745 -0.14

Yuan 6.1780 6.1815 +0.06

Change so far in 2014

Currency Latest bid End prev year Pct Move

Japan yen 102.08 105.28 +3.13

Sing dlr 1.2421 1.2632 +1.70

Taiwan dlr 29.944 29.950 +0.02

Korean won 1022.50 1055.40 +3.22

Baht 31.85 32.86 +3.17

Peso 43.40 44.40 +2.29

Rupiah 11575.00 12160.00 +5.05

Rupee 60.17 61.80 +2.71

Ringgit 3.1790 3.2755 +3.04

Yuan 6.1780 6.0539 -2.01

* Financial markets in Indonesia are closed for holidays.

(Editing by Kim Coghill)