EM ASIA FX-Most currencies rise on U.S-China optimism; Thai baht at 6-year peak
* S. Korean won at strongest in nearly 2 months * Philippine peso snaps four straight gaining sessions (Adds text, updates prices) By Ambar Warrick June 24 (Reuters) - Asian currencies firmed on Monday as markets bet that U.S. and Chinese leaders will make some progress on trade issues at a meeting later in the week, while the prospect of the U.S. Federal Reserve cutting rates in July saw continued regional inflows. Although a trade deal appears unlikely when Donald Trump and Xi Jingping meet on the sidelines of the G20 summit in Osaka, investors are hoping the meeting may lead to a postponement of any further U.S. tariffs and open the door for negotiations to resume after talks broke down in May. "We think market anticipation of a reboot in trade talks should give a palpable lift to the RMB (yuan) and Asian currencies this week, in light of the previously dire mood over the global trade slowdown and worsening U.S.-China trade relations," Chang Wei Liang, forex strategist at Mizuho Bank said in a note. Dovish comments from the Feds have also resulted in broader dollar weakness and led to increased capital inflows for riskier regional assets, especially currencies. This was also reflected in the trimming of short positions on most Asian currencies over the past two weeks. An unwinding in risk-off sentiment was most apparent with the South Korean won and the Taiwan dollar, which strengthened 0.6% and 0.3% to the dollar, respectively. The two are the worst performing currencies in Asia this year due to their economies' heavy reliance on hi-tech exports, a sector which has been a major bone of contention between the U.S. and China. The won touched its strongest level in nearly 2 months, while the Taiwan dollar held around its strongest since Mid-May. Investors were also awaiting industrial output and unemployment data from Taiwan later in the day. The Thai baht strengthened as much as 0.23% to the dollar, touching its strongest level in six years. Thailand's relative economic stability and insulation from broader trade headwinds has made the baht a haven for investors in emerging Asia. Bucking the trend, the Philippine peso softened 0.3%, breaking four straight sessions of gains. The currency had touched its strongest point in 16 months last week. The Indian rupee slipped after reports that Reserve Bank of India Deputy Governor Viral Acharya resigned six months before the scheduled end of his term in office. The Indonesian rupiah traded sideways after a surprise return to a trade surplus by the archipelago in May. The Chinese yuan edged 0.1% to the dollar after a weaker-than-expected fixing by the People's Bank of China. The currency held at its strongest level in nearly 2 months. The following table shows rates for Asian currencies against the dollar on Monday. CURRENCIES VS U.S. DOLLAR Change on the day at 0504 GMT Currency Latest bid Previous day Pct Move Japan yen 107.430 107.3 -0.12 Sing dlr 1.354 1.3549 +0.08 Taiwan dlr 31.048 31.150 +0.33 Korean won 1157.600 1164 +0.55 Baht 30.790 30.85 +0.19 Peso 51.570 51.41 -0.31 Rupiah 14155.000 14150 -0.04 Indian Rupee 69.570 69.55 -0.03 Ringgit 4.143 4.148 +0.12 Yuan 6.876 6.8675 -0.13 Change so far in 2019 Currency Latest bid End 2018 Pct Move Japan yen 107.430 109.56 +1.98 Sing dlr 1.354 1.3627 +0.66 Taiwan dlr 31.048 30.733 -1.01 Korean won 1157.600 1115.70 -3.62 Baht 30.790 32.55 +5.72 Peso 51.570 52.47 +1.75 Rupiah 14155.000 14375 +1.55 Indian Rupee 69.570 69.77 +0.29 Ringgit 4.143 4.1300 -0.31 Yuan 6.876 6.8730 -0.05 (Reporting by Ambar Warrick in Bengaluru)
