Asia under pressure as yen falls on rate outlook

By Staff
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Google Oneindia News

SINGAPORE, Jan 17 (Reuters) Asian currencies were steady to slightly weaker on Wednesday as the yen fell against the dollar after media reports poured cold water on market expectations of an imminent rate rise by the Bank of Japan.

The South Korean won was quoted as weak as 937.6 per U.S.

dollar, while the Taiwan dollar weakened to as far as 32.84 per U.S. dollar.

But most Asian currencies still held their ground against the dollar after having rallied for two days in spite of a weakening yen, leading more analysts to believe their recent movements versus the dollar were becoming less associated with the Japanese currency.

''Traders are looking at the BOJ policy meeting announcement more than the better current account data this morning. However, we note that the correlations between the yen and ex-Japan Asian currencies have fallen off,'' said Thio Chin Loo, currency strategist at BNP Paribas.

The yen fell to a 13-month low against the dollar on Wednesday as media reports said the Bank of Japan was likely to hold interest rates steady this week, dousing widespread expectations for an increase.

The array of reports from Kyodo news agency, the Nikkei newspaper and others, said the BOJ wanted to take more time.

REUTERS PV GC1240

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