EM ASIA FX-Baht leads Asia FX gains as Fed seen delaying rate hikes
* Baht hits 4-month high after bond inflows
* Taiwan dollar up on exporters; ringgit gains on fixing
(Adds text, updates prices)
By Jongwoo Cheon
SINGAPORE, Feb 26 (Reuters) - Most emerging Asian currencies
firmed on Thursday as comments by Federal Reserve Chair Janet
Yellen prompted markets to push back expectations of U.S. rate
tightening.
Thailand's baht hit a four-month high as foreign
investors continued to buy local bonds.
The Taiwan dollar rose on month-end corporate bids,
while the Malaysian ringgit advanced on demand linked
to the daily fixing.
Indonesia's rupiah edged up as the central bank
continued to warn of intervention in the foreign exchange
market, even it said it does not have a target level.
Yellen did not offer any additional clues on the timing of a
rate increase before the House of Representatives Financial
Services Committee on Wednesday.
On Tuesday, she told a senate committee that the Fed would
first remove the word "patient" in describing its approach to
interest rate hikes, then enter a phase in which moves are
possible at any meeting.
"Asian currencies got a reprieve and will stay firm for a
while as markets pushed back expectations of U.S. rate hikes,"
said Yuna Park, a currency and bond analyst at Dongbu Securities
in Seoul.
"Still, the dollar's strength remains intact, so only
currencies with solid fundamentals would benefit," Park said.
The Indian rupee, the baht and the Philippine peso
would be among those beneficiaries, she added.
BAHT
The baht rose as much as 0.5 percent to 32.353 per dollar,
its strongest since Oct. 28.
Foreign investors were net buyers in the domestic bonds
market during the previous five consecutive sessions, according
to the Thai bond Market Association data.
TAIWAN DOLLAR
The Taiwan dollar strengthened from Wednesday's domestic
close of 31.532 per U.S. dollar, which traders said the central
bank made up through usual last-minute intervention.
Local exporters bought the Taiwan dollar for month-end
settlements.
The island's currency pared some of earlier gains as local
shares fell with stock inflows not seen.
Importers also bought the greenback for payments below
31.400, traders said.
RINGGIT
The ringgit rose as fixing-related demand prompted traders
to cover short positions.
Malaysia's government bond prices also rose with five-year
debt yield down to 3.628 percent, its lowest since
Nov. 10.
Still, some traders were looking to sell the ringgit on
rallies.
"USD/MYR can't stay below 3.6. A U.S. rate hike is certain
in the second half," said a senior Malaysian bank trader in
Kuala Lumpur.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0525 GMT
Currency Latest bid Previous day Pct Move
Japan yen 118.96 118.87 -0.08
Sing dlr 1.3540 1.3532 -0.06
Taiwan dlr 31.430 31.532 +0.32
Korean won 1097.60 1099.00 +0.13
Baht 32.36 32.52 +0.49
Peso 44.10 44.12 +0.05
Rupiah 12860.00 12872.00 +0.09
Rupee 61.97 62.03 +0.09
Ringgit 3.5970 3.6055 +0.24
Yuan 6.2596 6.2598 +0.00
Change so far in 2015
Currency Latest bid End prev year Pct Move
Japan yen 118.96 119.66 +0.58
Sing dlr 1.3540 1.3260 -2.07
Taiwan dlr 31.430 31.718 +0.92
Korean won 1097.60 1099.30 +0.15
Baht 32.36 32.90 +1.67
Peso 44.10 44.72 +1.41
Rupiah 12860.00 12380.00 -3.73
Rupee 61.97 63.03 +1.71
Ringgit 3.5970 3.4965 -2.79
Yuan 6.2596 6.2040 -0.89
(Additional reporting by Roger Tung in TAIPEI and IFR Markets'
Catherine Tan; Editing by Kim Coghill)