* South Korean won strengthens up to 0.7%
* Philippine peso gains about 0.6%
* Chinese yuan touches best level in five months
(Adds text, updates prices)
By Aby Jose Koilparambil
Jan 7 (Reuters) - Most Asian currencies drew relief on
Tuesday from the absence of any immediate escalation in tensions
other than sabre rattling between Iran and the United States
after the killing of Tehran's top general in a U.S. drone strike
at the end of last week.
Fears of a fresh conflict in the oil-rich Middle East have
kept markets on edge, but on Tuesday morning even oil prices
moderated, having hit their highest levels in months during the
previous two sessions.
"Some of oil importing countries' currencies, such as the
South Korean won, can be seen with greater gains," Jingyi Pan,
market strategist at IG Asia, said.
Otherwise, Pan said the currency market was broadly
cautious, unsure how the confrontation between Washington and
Tehran would play out.
The South Korean won KRW=KFTC strengthened as much as
0.7%, making its biggest intraday percentage move in more than
three weeks.
South Korea is the world's fifth largest importer of crude
oil but being a current account surplus economy, it is
relatively less impacted by crude price movements compared to
other Asian oil importers, like India and Indonesia.
Data released earlier in the day showed South Korea's
current account surplus widened from a year earlier to $5.97
billion in November. The Indian rupee INR=IN and the Indonesian rupiah IDR=ID
appreciated 0.3% each.
Underpinning the risk-on sentiment, the Chinese yuan
CNY=CFXS tacked on 0.4% to strike a five-month high, while the
Malaysian ringgit MYR=MY and the Singapore dollar SGD=
gained 0.2% and about 0.1%, respectively.
The Taiwan dollar TWD=TP strengthened 0.2% ahead of
December trade data, scheduled to be released later in the day.
PESO GAINS
The Philippine peso PHP= put on up to 0.6%, its biggest
intraday percentage gain in more than two months.
Data released earlier in the day showed annual inflation
rose picked up more than expected in December, but remained
within the central bank's 2%-4% target for last year, on higher
prices of food, non-alcoholic beverages and utilities.
ANZ analysts said in a note that if the recent rise in crude
oil prices was sustained, it would pose further upside risk to
inflation in Philippines, while retaining their view that the
central bank has room to cut its policy interest rate as early
as the first quarter this year.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0519 GMT
Currency Latest bid Previous day Pct Move
Japan yen 108.490 108.36 -0.12
Sing dlr 1.348 1.3490 +0.09
Taiwan dlr 30.064 30.110 +0.15
Korean won 1165.000 1172.1 +0.61
Baht 30.130 30.13 +0.00
Peso 50.840 51.08 +0.47
Rupiah 13885.000 13935 +0.36
Rupee 71.713 71.93 +0.30
Ringgit 4.094 4.102 +0.20
Yuan 6.954 6.9768 +0.33
Change so far in 2020
Currency Latest bid End 2019 Pct Move
Japan yen 108.490 108.61 +0.11
Sing dlr 1.348 1.3444 -0.25
Taiwan dlr 30.064 30.106 +0.14
Korean won 1165.000 1156.40 -0.74
Baht 30.130 29.91 -0.73
Peso 50.840 50.65 -0.37
Rupiah 13885.000 13880 -0.04
Rupee 71.713 71.38 -0.46
Ringgit 4.094 4.0890 -0.12
Yuan 6.954 6.9632 +0.13