March 28 (Reuters) - Emerging Asian currencies edged higher
against the dollar on Wednesday, as U.S.-China trade tensions
weighed on the greenback but investor caution about the trade
rift also tempered appetite for risk in the region.
The South Korean won climbed over 0.25 percent
following the news that the United States and South Korea have
reached agreement on a revised trade pact that includes a side
deal aimed at deterring competitive currency devaluation by
Seoul.
The dollar index, which measures the greenback versus
a group of six major currencies, was down 0.1 percent at 89.291.
"The uncertainty over U.S. protectionism isn't going to fade
anytime soon," said Stephen Innes, head of trading in
Asia-Pacific for Oanda in Singapore in a note.
"While investors should enjoy the small win on the tariff
front, they'll be best served to prepare for a long drawn out
and perhaps more rancorous dialogue between U.S. and China when
it comes to intellectual property rights."
The Malaysian ringgit, which hit a near 2-year high,
led the regional currencies on the day, bolstered by high oil
prices and portfolio inflows.
Foreigners have bought $25 million in Malaysian equities
this month to take their year's tally to $590 million, according
to the data compiled by Scotiabank.
The Taiwan dollar and China's yuan were
trading flat on the day.
Qi Gao, FX strategist at Scotiabank expects the Taiwan
dollar to rise further as it has been tracking the moves of
China's yuan recently.
He said China's stance to tolerate more appreciation in the
yuan to help reduce its merchandise trade surplus with the U.S.
would support the Taiwan dollar.
Some analysts said the fall of 10-year U.S. Treasury yield
to a seven-week low of 2.770 percent would prompt carry trades
in high yielding Asian currencies.
THAI BAHT
The Thai baht was down 0.06 percent ahead of the
country's central bank monetary policy meeting.
A Reuters poll showed the central bank is expected to leave
its policy rate unchanged as the economy gains traction.
The baht has risen over 4 percent against the dollar this
year, after its 10 percent gain in 2017.
"A materially stronger effective exchange rate constitutes
tighter overall monetary conditions. And this too offsets the
need for the Bank of Thailand to tighten," Vishnu Varathan, head
of economics and strategy for Mizuho Bank in Singapore, said in
a note.
CURRENCIES VS U.S. DOLLAR
Change as of 0438
GMT
Currency Latest Previous Pct
bid day Move
Japan yen 105.540 105.33 -0.20
Sing dlr 1.308 1.3096 +0.15
Taiwan dlr 29.140 29.135 -0.02
Korean won 1066.00 1070.3 +0.40
0
Baht 31.200 31.18 -0.06
Peso 52.230 52.32 +0.17
Rupiah 13742.0 13740 -0.01
00
Rupee 64.948 64.98 +0.04
Ringgit 3.857 3.8755 +0.49
Yuan 6.278 6.2775 -0.01
Change so far in
2018
Currency Latest End 2017 Pct
bid Move
Japan yen 105.540 112.67 +6.76
Sing dlr 1.308 1.3373 +2.27
Taiwan dlr 29.140 29.848 +2.43
Korean won 1066.00 1070.50 +0.42
0
Baht 31.200 32.58 +4.42
Peso 52.230 49.93 -4.40
Rupiah 13742.0 13565 -1.29
00
Rupee 64.948 63.87 -1.66
Ringgit 3.857 4.0440 +4.86
Yuan 6.278 6.5069 +3.64
