* Indonesian rupiah set to snap fourth weekly gain
* Thai baht poised for a fifth weekly gain
* S.Korean won hits strongest level in over 3 weeks
(Adds text, updates prices)
By Shreya Mariam Job
May 8 (Reuters) - Most Asian currencies strengthened on
Friday as talks between U.S. and Chinese trade officials stoked
hopes that recent tensions between the economic giants over the
origin of the coronavirus outbreak could be easing.
China's commerce ministry said top trade representatives of
China and the United States held a phone call on Friday and
agreed to strengthen macroeconomic and public health
cooperation.
Earlier this week, investor sentiment was frayed after
Washington threatened to impose additional tariffs on Beijing in
retaliation over the coronavirus outbreak.
"The last thing global investors need right now is a one-two
punch from trade war risks spiking amid the coronavirus
pandemic," said Han Tan, market analyst at FXTM.
Investors of trade-reliant economies cheered the news, with
the South Korean won KRW=KFTC strengthening as much as 0.9% to
hit its strongest level in more than three weeks, while the
Indian rupee INR=IN firmed 0.3%.
The easing of lockdown measures in different parts of the
world has also lifted sentiment and supported some riskier
assets in the past few sessions.
The Indonesian rupiah IDR= strengthened 0.6% after reports
that the country's foreign exchange reserves rose by $6.9
billion in April to $127.88 billion, mainly due to the
government's U.S.-dollar bond sale.
The rupiah, however, is set to snap its fourth weekly gain
to post a loss of about 0.4%.
Investment flows are being diverted from the greenback to
emerging market currencies on prospects that a trade deal would
be implemented despite the coronavirus disruption.
Meanwhile, the Thai baht THB=TH firmed 0.4% after the
country reported fewer number of fresh coronavirus cases,
prompting Southeast Asia's second-largest economy to allow some
businesses to re-emerge from the lockdown.
"We have revised down our 2020 growth forecast from a
decline of 6.8% to a decline of 9.0%, as we now expect tourism
may not return until 4Q20," a note from Bank of America Global
Research said. "After reopening, the economy is likely to run
well below its capacity."
The baht, which has so far been the worst performing
currency in the region this year, is poised to post its fifth
straight weekly gain.
CURRENCIES VS U.S. DOLLAR
Change on the day at
0710 GMT
Currency Latest bid Previous Pct
day Move
Japan yen 106.360 106.27 -0.08
Sing dlr 1.413 1.4138 +0.05
Taiwan dlr 29.859 29.950 +0.30
Korean won 1219.900 1225 +0.42
Baht 32.280 32.42 +0.43
Peso 50.453 50.5 +0.09
Rupiah 14890.000 14980 +0.60
Rupee 75.560 75.76 +0.26
Ringgit 4.330 4.322 -0.18
Yuan 7.077 7.0850 +0.12
Change so far in
2020
Currency Latest bid End 2019 Pct
Move
Japan yen 106.360 108.61 +2.12
Sing dlr 1.413 1.3444 -4.86
Taiwan dlr 29.859 30.106 +0.83
Korean won 1219.900 1156.40 -5.21
Baht 32.280 29.91 -7.34
Peso 50.453 50.65 +0.39
Rupiah 14890.000 13880 -6.78
Rupee 75.560 71.38 -5.53
Ringgit 4.330 4.0890 -5.57
Yuan 7.077 6.9632 -1.60