* Asian units firm on trade optimism
* Taiwan dollar, S.Korean won lead gains
* China's yuan rise against the dollar, despite weak trade
data
(Adds text, updates prices)
By Patturaja Murugaboopathy
Oct 14 (Reuters) - Asian currencies rose on Monday after the
United States and China signalled progress in their trade
negotiations, which lifted investor sentiment and prompted a
hunt for risk assets such as emerging market pairs.
The improved mood supported currencies of trade-reliant
economies, specifically the Taiwan dollar and the South Korean
won, which led regional gains.
U.S. President Donald Trump on Friday outlined the first
phase of a deal to end a trade war with China and suspended a
threatened tariff hike on $250 billion in Chinese imports that
was set to take effect from Tuesday. However, he did not revoke
any of the existing tariffs on Chinese goods. According to Trump, the phase-1 trade deal would cover
agriculture, currency and some aspects of intellectual property
protections.
Most Asian currencies have been severely hit since the onset
of the trade war between the world's two biggest economies last
year, as higher U.S. tariffs on Chinese goods slowed the
regional economies as a whole, with many countries playing a
major part of the supply chain to China's exports.
"The partial deal between U.S. and China should temporarily
boost sentiment, remove some of the depreciation pressure on CNH
and provide relative support for Asia ex-Japan currencies,
including the South Korean won and Taiwan dollar," said
Saktiandi Supaat, head of FX research at Maybank in a note.
"The actual signing of the agreement is still four to five
weeks away and past experience suggests there is still room for
disappointment."
The Taiwan dollar TWD=TP and the South Korean won
KRW=KFTC led the regional currencies, each rising more than
0.5% against the greenback.
The Taiwan dollar, in fact, touched a more than one-year
high of 30.61 to the dollar.
China's yuan CNY=CFTC , also jumped to a two-month high
against the dollar despite its recent trade data showed slowing
exports and imports, pointing to a further weakness in the
economy. The Indian rupee INR=IN and the Philippine peso PHP=PH
also gained over 0.25% each on Monday.
SINGAPORE DOLLAR
The Singapore dollar SGD= gained 0.28% against the dollar
on Monday.
The Sino-U.S. trade optimism boosted the export reliant
nation's currency, despite data showing its economy grew less
than expected in the third quarter on an annualised basis.
However, the economy avoided slipping into a technical
recession, preliminary data showed on Monday.
In a statement, the Monetary Authority of Singapore (MAS)
said it would lower slightly the slope of the Singapore dollar's
policy band, while the width and centre of the band would not be
changed. "The rationale for easing is clear: subdued core inflation
and weaker economic growth with output below potential. Overall,
we think MAS is keeping its option open to more easing ahead,"
said MUFG Bank in a report.
The following table shows rates for Asian currencies against
the dollar at 0533 GMT.
CURRENCIES VS U.S. DOLLAR
Change on the day
at 0533 GMT
Currency Latest Previou Pct
bid s day Move
Japan yen 108.33 108.4 +0.06
0
Sing dlr 1.369 1.3725 +0.27
Taiwan dlr 30.580 30.850 +0.88
Korean won 1183.5 1188.8 +0.45
00
Peso 51.450 51.6 +0.29
Rupiah 14110. 14123 +0.09
000
Rupee 70.868 71.02 +0.22
Ringgit 4.178 4.184 +0.14
Yuan 7.055 7.0890 +0.48
*Thai markets are
closed for holiday
Change so far in
2019
Currency Latest End Pct
bid 2018 Move
Japan yen 108.33 109.56 +1.14
0
Sing dlr 1.369 1.3627 -0.45
Taiwan dlr 30.580 30.733 +0.50
Korean won 1183.5 1115.70 -5.73
00
Baht 30.410 32.55 +7.04
Peso 51.450 52.47 +1.98
Rupiah 14110. 14375 +1.88
000
Rupee 70.868 69.77 -1.55
Ringgit 4.178 4.1300 -1.15
Yuan 7.055 6.8730 -2.58
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