* Thai baht hits a more than 2-mth high
* Indian rupee firms; April inflation at 6-mth high
* Indonesian rupiah weakens ahead of April trade data
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By Niyati Shetty
May 14 (Reuters) - Most emerging Asian currencies firmed on
Tuesday as conciliatory comments from the United States and
China reduced investor anxiety over the escalating tariff war
between the world's two biggest economies.
The Chinese yuan steadied 0.1% to 6.873 a dollar, following
a 0.9% decline on Monday.
Market sentiment was buoyed after U.S. President Donald
Trump said he feels trade talks between Beijing and Washington
are "going to be very successful", while China's top diplomat
said the two nations have the "ability and wisdom" to reach a
deal. The comments came the day after China said it would impose
higher tariffs on most U.S. imports on a revised $60 billion
target list, in retaliation for the tariff hike on $200 billion
worth of Chinese goods that went into effect from last Friday.
Investors are latching on to any twist and turn in the trade
war negotiations, said Wei Liang Chang, FX strategist at Mizuho
Bank, adding that there is less negativity in the markets now
after the expected Chinese retaliation was announced.
Leading gains in the region, the Thai baht THB=TH firmed
as much as 0.5% to 31.46 per dollar, hitting its strongest level
in more than two months.
The currency, the best performer in the region this year,
has had some insulation from the trade dispute due to Thailand's
large current account surplus.
Thailand's central bank said on Monday it has not intervened
in trading of the baht to gain a trade advantage with the United
States. This is positive. Chang said, as it means the authorities
would not be restraining gains by the baht unnecessarily.
The Indian rupee INR=IN gained 0.2% to 70.4 a dollar.
Government data late on Monday showed India's retail
inflation rate hit a six-month high in April but remained below
the central bank's target for the ninth month. The Philippine peso PHP= and the Singapore dollar SGD=
firmed against the greenback, and the South Korean won
KRW=KFTC was marginally stronger.
RUPIAH's PRE-DATA STUMBLE
Indonesia's rupiah IDR= weakened as much as 0.3% to 14,450
per dollar ahead of April trade figures on Wednesday and Bank
Indonesia's interest rate decision on Thursday.
The country is expected to record its first trade deficit in
three months in April, according to a Reuters poll, with exports
and imports predicted to continue their plunge. The central bank is expected to keep the benchmark rate at
6% as Sino-U.S. trade tensions have put pressure on the rupiah.