* Philippine peso leads gains
* Singapore oct core inflation eases
* Taiwan dollar flat ahead of industrial output data
(Adds text, updates prices)
By Shriya Ramakrishnan
Nov 25 (Reuters) - Asian currency markets were shackled in a
tight space on Monday, with investors content to hold most of
their bets in light of uncertainty over progress made in
U.S.-China trade talks.
Over the weekend, U.S. national security adviser Robert
O'Brien said that an initial agreement is still possible by the
end of the year, but warned Washington would not turn a blind
eye to what happens in Hong Kong. "The currency market is a bit fatigued on the trade side –
tired of the alternating hot and cold headlines....the
expectations are quite low right now in terms of what the deal
would involve," Sim Moh Siong, FX strategist at Bank of
Singapore said.
Moves in currency pairs were slight, with the Philippine
peso PHP= managing to tack on 0.3% against the dollar, while
the Chinese yuan CNY=CFXS firmed 0.1%.
"I don't know whether to use the word cautiously optimistic
because we were there before, and then we went to cautiously
pessimistic...markets seem to now be stuck in a limbo
territory," Siong added, referring to the small gains in the
market.
The Singapore dollar SGD= barely reacted to key inflation
readings for the city-state, while the Indian rupee INR= edged
higher.
Data on Monday showed that Singapore' core inflation rate
eased to its weakest level in over three years in October.
The Taiwan dollar TWD=TP traded flat ahead of the release
of industrial output figures for October, while the Thai baht
THB=TH was off 0.1%.
The country's central bank on Saturday said it would ease
rules governing the foreign exchange market and international
reserves, giving it more scope to tackle the baht's strength
following a series of rate cuts. The baht has risen nearly 8% on the dollar this year,
underpinned by Thailand's large current account surplus, high
foreign reserves and low foreign debt. KOREAN WON
The South Korean won KRW=KFTC advanced 0.3% against the
dollar.
Han Tan, a market analyst at FXTM, said the won was likely
being supported by market expectations the Bank of Korea will
keep its benchmark interest rates unchanged at its policy
meeting on Friday. The BOK cut the policy rate by 25 bps in
October to prop up a stuttering economy.
"The fact that the won has been Asia's most volatile
currency in recent weeks underscores the fluctuating levels of
optimism surrounding the U.S.-China trade deal," Han Tan, Market
Analyst at FXTM said.
The won, one of the most sensitive currencies to
trade-related headlines given its reliance on tech exports, has
lost just over 5.0% against the dollar this year.
Change on the day at 0553 GMT
Currency Latest bid Previous day Pct Move
Japan yen 108.810 108.64 -0.16
Sing dlr 1.364 1.3641 +0.04
Taiwan dlr 30.512 30.517 +0.02
Korean won 1176.000 1178.9 +0.25
Baht 30.210 30.18 -0.10
Peso 50.780 50.91 +0.26
Rupiah 14085.000 14080 -0.04
Rupee 71.618 71.71 +0.13
Ringgit 4.173 4.17 -0.07
Yuan 7.034 7.0405 +0.10
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 108.810 109.56 +0.69
Sing dlr 1.364 1.3627 -0.06
Taiwan dlr 30.512 30.733 +0.72
Korean won 1176.000 1115.70 -5.13
Baht 30.210 32.55 +7.75
Peso 50.780 52.47 +3.33
Rupiah 14085.000 14375 +2.06
Rupee 71.618 69.77 -2.58
Ringgit 4.173 4.1300 -1.03
Yuan 7.034 6.8730 -2.28