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EM ASIA FX-Most Asian currencies firm ahead of Sino-U.S. trade talks

Published 10/08/2019, 02:34 PM
Updated 10/08/2019, 02:40 PM
© Reuters.  EM ASIA FX-Most Asian currencies firm ahead of Sino-U.S. trade talks
USD/PHP
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005930
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* Chinese yuan strengthens most
* Thai baht edges lower, bucks trend
* High-level China-U.S. trade talks awaited

(Adds text, updates prices)
By Shreya Mariam Job
Oct 8 (Reuters) - Most Asian currencies edged higher on
Tuesday with the Chinese yuan firming the most after reopening
from a week long holiday while investors held positions ahead of
the high level Sino-U.S. trade talks on Thursday and Friday.
Prospects for progress in U.S.-China trade talks dimmed on
Monday after Washington blacklisted Chinese companies but
comments by U.S. President Donald Trump and his top economic
adviser, Larry Kudlow on looming trade talks were generally
upbeat. "We think there's a chance we could do something very
substantial," Trump said about the talks.
This comes after a media report stated that China is looking
to narrow the scope of the talks.
"China is realistic and would only target issues that both
countries have agreed on this week," a DBS note said. However,
sentiment seemed buoyed on hopes of a partial deal despite
Washington's move to blacklist Chinese companies.
The Chinese yuan CNY=CFXS reopened after a week long
holiday to strengthen 0.3%.
"Hopes have emerged on trade talks, inspired by reports that
Beijing is preparing to work through tough negotiations with the
U.S., setting a time-line for the thorny issues," Vishnu
Varathan, senior economist at Mizuho Bank said in a note.
The Philippine peso PHP= firmed 0.3% against the dollar,
clawing back some of the losses from the previous session. The
peso had weakened 0.4% on Monday amid caution ahead of the trade
talks.
The Taiwan dollar TWD=TP strengthened 0.3%. Data showed
that the island's equity markets received about $2.9 billion of
foreign investment in September, on optimism over its economy,
as a growing number of local firms were shifting their factories
to Taiwan from mainland China. The South Korean won KRW=KFTC firmed 0.2% after better
than expected third quarter forecast from the world's biggest
semiconductor firm, Samsung Electronics 005930.KS , reduced
concerns over South Korea's exports.
Meanwhile, the Thai Baht THB=TH bucked the trend to weaken
about 0.1%. The baht has shown resilience by strengthening by
the most among Asian units so far this year.
Indian financial markets were closed for a holiday.

CURRENCIES VS U.S. DOLLAR
Change on the day at 0620 GMT
Currency Latest bid Previous day Pct Move
Japan yen 107.370 107.28 -0.08
Sing dlr 1.380 1.3808 +0.09
Taiwan dlr 30.817 30.902 +0.28
Korean won 1194.300 1196.6 +0.19
Baht 30.470 30.45 -0.07
Peso 51.740 51.89 +0.29
Rupiah 14140.000 14155 +0.11
Ringgit 4.188 4.191 +0.07
Yuan 7.123 7.1480 +0.35

Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 107.370 109.56 +2.04
Sing dlr 1.380 1.3627 -1.22
Taiwan dlr 30.817 30.733 -0.27
Korean won 1194.300 1115.70 -6.58
Baht 30.470 32.55 +6.83
Peso 51.740 52.47 +1.41
Rupiah 14140.000 14375 +1.66
Rupee 71.020 69.77 -1.76
Ringgit 4.188 4.1300 -1.38
Yuan 7.123 6.8730 -3.52

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