* Thai baht gains for fifth straight session
* Chinese yuan loses for third straight session
* EMFX Asia enjoys more inflows amid USD weakness
(Adds text, updates prices)
By Ambar Warrick
June 25 (Reuters) - Most Asian currencies rose on Tuesday as
talks between top U.S. and Chinese trade officials supported
appetite for emerging market assets, although investors were
still skittish ahead the meeting between Donald Trump and Xi
Jinping later this week.
Dialogue between Chinese Vice Premier Liu He, U.S. Trade
Representative Robert Lighthizer and Treasury Secretary Steven
Mnuchin was taken well by markets, given the breakdown in talks
seen in May. The Thai baht THB=TH surged nearly 0.4% to the dollar,
reaching its strongest level in six years. The currency was
undeterred by a weaker-than-expected industrial output reading,
and continued to benefit from strong foreign inflows.
The Indonesian rupiah IDR=ID strengthened 0.2% to the
dollar after Southeast Asia's largest economy posted a surprise
trade surplus in May, spurring optimism over the economy amid
global headwinds. The Indian rupee INR=IN and the South Korean won
KRW=KFTC both gained about 0.1% to the dollar.
Bucking the regional rally, the Chinese yuan CNY=CFXS
dipped around 0.1% to the dollar after a weaker than expected
daily fix by the People's Bank of China (PBOC).
The currency, which saw its best week in more than three
months, fell for a third straight session. The yuan has seen
muted trade ahead of the G20 meeting. Markets are watching the
meet for any cues on the reopening of trade negotiations between
U.S. and China at the G20 meet in Osaka.
Broader dollar .DXY weakness, driven by the U.S. Federal
Reserve's strong signals that it will cut interest rates, also
underpinned regional currencies. Markets now await further
comments from other Fed speakers later in the day.
THAI BAHT
The baht extended gains for a fifth straight session.
"Foreign funds continue to pour into Thailand's fixed income
space, with total net inflows month to date in June at $2.41
billion – the highest since Sep 2017," OCBC said in a note.
"The strong performance of the baht vis-a-vis regional peers
may have resulted in foreign demand for the currency, expressed
via holding Thai assets such as equities and bonds," OCBC added.
OCBC also noted that the Thai central bank was seen as the
least dovish amongst its regional peers, and would not ease
rates as aggressively as other banks, if at all.
The baht outperformed its regional peers in 2018, and has
continued the trend so far in 2019, adding about 6.3%.
The following table shows rates for Asian currencies against
the dollar on Tuesday.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0445 GMT
Currency Latest bid Previous day Pct Move
Japan yen 106.820 107.28 +0.43
Sing dlr 1.352 1.3532 +0.07
Taiwan dlr 31.087 31.110 +0.07
Korean won 1154.800 1156.5 +0.15
Baht 30.630 30.74 +0.36
Peso 51.330 51.32 -0.02
Rupiah 14100.000 14135 +0.25
Indian Rupee 69.248 69.35 +0.15
Ringgit 4.142 4.138 -0.10
Yuan 6.882 6.8761 -0.09
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 106.820 109.56 +2.57
Sing dlr 1.352 1.3627 +0.77
Taiwan dlr 31.087 30.733 -1.14
Korean won 1154.800 1115.70 -3.39
Baht 30.630 32.55 +6.27
Peso 51.330 52.47 +2.22
Rupiah 14100.000 14375 +1.95
Indian Rupee 69.248 69.77 +0.75
Ringgit 4.142 4.1300 -0.29
Yuan 6.882 6.8730 -0.14