* China's yuan hits lowest in over 5 weeks
* Philippine peso strengthens to more than 1-week high
* All eyes on this week's U.S. Fed meeting
(Adds text, updates prices)
By Aby Jose Koilparambil
July 29 (Reuters) - Most Asian currencies lost steam on
Monday as the dollar strengthened on the back of strong U.S. GDP
data and investors remained cautious ahead of this week's
Federal Reserve meeting where a rate cut has been largely priced
in.
Investors will also be watching the resumption of Sino-U.S.
talks as the world's top two economies make yet another attempt
to resolve their differences on trade and other issues that have
roiled financial markets for over a year now.
The dollar clung to a two-month high against a basket of
currencies in Asia after better-than-expected U.S. GDP data last
week enhanced its yield attraction against rival currencies.
USD/ The Fed is widely expected to cut interest rates for the
first time in more than a decade in its July 30-31 meeting, a
move broadly seen as a pre-emptive one to protect the economy
from global uncertainties and trade pressures.
"The elephant in the room for this week is the Fed...a 50
basis points rate reduction seems unlikely now," said Maybank
analysts in a note.
U.S. and Chinese trade negotiators meet in Shanghai for
their first in-person talks since a G20 truce last month, but
expectations are low for a breakthrough. The Chinese yuan CNY=CFXS weakened as much as 0.2% to hit
its lowest against the dollar in more than five weeks.
Data on Saturday showed profits earned by China's industrial
firms contracted in June after a brief gain the previous month,
fuelling concerns that a slowdown in manufacturing from a
bruising trade war will drag on economic growth. The Indonesian rupiah IDR=ID , the Indian rupee IDR=ID ,
the Malaysian ringgit MYR=MY and the Singapore dollar SGD=
slipped as much as 0.1%.
The Korean won KRW=KFTC and the Taiwan dollar TWD=TP
were little changed.
The Philippine peso PHP= was the only currency that showed
some relative strength, putting on as much as 0.3% to touch a
more than one-week high.
Thai financial markets were closed for a holiday.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0455 GMT
Currency Latest bid Previous day Pct Move
Japan yen 108.590 108.66 +0.06
Sing dlr 1.371 1.3696 -0.12
Taiwan dlr 31.094 31.090 -0.01
Korean won 1184.600 1184.8 +0.02
Peso 51.030 51.09 +0.12
Rupiah 14015.000 13999 -0.11
Rupee 68.940 68.90 -0.06
Ringgit 4.120 4.118 -0.05
Yuan 6.893 6.8800 -0.18
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 108.590 109.56 +0.89
Sing dlr 1.371 1.3627 -0.62
Taiwan dlr 31.094 30.733 -1.16
Korean won 1184.600 1115.70 -5.82
Baht 30.880 32.55 +5.41
Peso 51.030 52.47 +2.82
Rupiah 14015.000 14375 +2.57
Rupee 68.940 69.77 +1.20
Ringgit 4.120 4.1300 +0.24
Yuan 6.893 6.8730 -0.28