* Yuan rises from weakest level in over 6 months
* South Korean won leads intraday gains
(Adds text, updates prices)
By Ambar Warrick
June 11 (Reuters) - Most Asian currencies inched up on
Tuesday, led higher by growing expectations for a U.S. interest
rate cut and a stronger yuan fix by the People's Bank of China.
However, fresh tariff threats by the United States against
China brewed further uncertainty about a trade deal
materialising, and dampened any major gains.
The Chinese yuan CNY=CFXS rose about 0.19% to the dollar,
edging higher from its weakest position in more than six months.
The yuan had dropped on Monday after China's central bank
governor hinted that the bank may tolerate further weakness in
the currency, possibly even beyond the key 7 per dollar level.
CNY/
China's central bank also said it will sell yuan-denominated
bills in Hong Kong in late-June, in order to improve the yuan
bond yield curve. "This morning, a stronger than expected yuan fix by PBoC and
plans to sell bills in Hong Kong later this month helped to
anchor relative stability for yuan and Asia outside Japan
forex," said Saktiandi Supaat, head of FX research at Maybank in
a report.
Market participants are now awaiting a likely meeting
between U.S. President Donald Trump and his Chinese counterpart
Xi Jinping at a G20 leaders summit, though Beijing has not yet
confirmed that meeting will take place. China is the largest
trading partner to most Asian countries, and of late has served
as a bellwether for economic health in the region.
The South Korean won KRW=KFTC rose about 0.41%, tracking
local equities. The won recently saw drastic selldowns as a
slowdown in the country's tech-driven economy spelt further
headwinds from the Sino-U.S. trade war.
The Taiwan dollar TWD=TP rose about 0.09% to the dollar,
snapping two straight days of losses. Like South Korea, Taiwan's
economy has also come under pressure from global headwinds to
the technology sector.
Exports from the country declined 4.8% in May, as expected.
The Indian rupee INR=IN rose about 0.27% to the dollar.
While the shift to an accommodative stance by the Reserve Bank
of India has made the rupee a bit more attractive, investors
remain concerned over the economy, especially in the wake of a
weaker than expected first-quarter GDP.
The Philippine peso PHP= rose 0.17% to the dollar, ahead
of a market holiday in the region on Wednesday. Data showed that
the country's trade deficit widened slightly in April over
March, although imports declined 1.9% from a year ago.
The following table shows rates for Asian currencies against
the dollar on Tuesday.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0434 GMT
Currency Latest bid Previous day Pct Move
Japan yen 108.600 108.43 -0.16
Sing dlr 1.365 1.3661 +0.06
Taiwan dlr 31.408 31.436 +0.09
Korean won 1180.400 1185.2 +0.41
Baht 31.320 31.32 +0.00
Peso 51.990 52.08 +0.17
Rupiah 14258.000 14245 -0.09
Rupee 69.470 69.65 +0.26
Ringgit 4.163 4.162 -0.01
Yuan 6.918 6.9305 +0.19
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 108.600 109.56 +0.88
Sing dlr 1.365 1.3627 -0.19
Taiwan dlr 31.408 30.733 -2.15
Korean won 1180.400 1115.70 -5.48
Baht 31.320 32.55 +3.93
Peso 51.990 52.47 +0.92
Rupiah 14258.000 14375 +0.82
Rupee 69.470 69.77 +0.43
Ringgit 4.163 4.1300 -0.78
Yuan 6.918 6.8730 -0.64