* Lot of trade optimism already priced in - analyst
* S. Korean won slips; cenbank policy meeting due on Friday
* Indonesian rupiah firms to near 2-year high
(Adds text, updates prices)
By Niyati Shetty
Jan 16 (Reuters) - Most Asian currencies clocked slight
gains against the greenback on Thursday after the United States
and China signed an initial trade deal, though risk appetite was
subdued as a number of contentious issues remained unresolved.
The Chinese yuan CNY=CFXS rose 0.13% to 6.881 per dollar.
The currency has gained about 2% since December.
The deal signed by U.S. President Donald Trump and Chinese
Vice Premier Liu He on Wednesday will see China boost purchases
of U.S. products in exchange for a roll back of some tariffs,
but does not address several structural differences that led to
the conflict.
"Lot of the optimism on this (trade) front has already been
priced in," analysts at DBS Bank said in a note.
The Philippine peso PHP= added 0.2%, while the Taiwan
dollar TWD=TP and the Malaysian ringgit MYR= edged up.
The South Korea won KRW=KFTC retreated 0.2% ahead of Bank
of Korea's (BoK) policy meeting due on Friday.
A Reuters poll showed that the central bank is likely to
keep rates on hold at 1.25% due to signs of economic recovery,
though any further uncertainties in its growth outlook could
result in rate cuts again this year. "Pressure for the BoK to cut rates to support growth has
been reduced recently, thanks to the stabilisation in external
trade conditions and the pickup in domestic demand," DBS said.
NO INTERVENTION TO RUPIAH RALLY
The Indonesian rupiah IDR= was firmed as much as 0.3% to
its strongest level since February 2018.
The central bank on Thursday said a stronger rupiah will not
harm exporters, refuting concerns raised by Indonesia's
President Joko Widodo earlier in the day that exporters may be
upset if the currency strengthens too quickly against the
dollar. Bank Indonesia's deputy governor reaffirmed that the rupiah
was strengthening on improving fundamentals and added that the
central bank did not see a need to intervene.
The rupiah has gained 1.7% so far this year, making it the
best performing currency in the region.
The following table shows rates for Asian currencies against
the dollar at 0452 GMT.
CURRENCIES VS U.S. DOLLAR
Currency Latest bid Previous day Pct Move
Japan yen 109.920 109.88 -0.04
Sing dlr 1.346 1.3460 +0.00
Taiwan dlr 29.941 29.950 +0.03
Korean won 1159.700 1157 -0.23
Baht 30.290 30.26 -0.10
Peso 50.660 50.76 +0.20
Rupiah 13645.000 13660 +0.11
Rupee 70.800 70.81 +0.01
Ringgit 4.067 4.0681 +0.03
Yuan 6.884 6.8900 +0.08
Change so far in 2020
Currency Latest bid End 2019 Pct Move
Japan yen 109.920 108.61 -1.19
Sing dlr 1.346 1.3444 -0.12
Taiwan dlr 29.941 30.106 +0.55
Korean won 1159.700 1156.40 -0.28
Baht 30.290 29.91 -1.25
Peso 50.660 50.65 -0.02
Rupiah 13645.000 13880 +1.72
Rupee 70.800 71.38 +0.82
Ringgit 4.067 4.0890 +0.54
Yuan 6.884 6.9632 +1.15