* Korean won sees best day in a week
* Chinese yuan touches strongest level in 2 weeks
* Thai baht weakens up to 0.2%
(Adds text, updates prices)
By Aby Jose Koilparambil
Oct 28 (Reuters) - Most Asian currencies eked out narrow
gains on Monday as hopes of a partial resolution to the
festering trade dispute between the United States and China by
next month whetted risk appetites.
The gains, however, were capped as the dollar firmed ahead
of a U.S. Federal Reserve meeting this week where policymakers
are expected to cut interest rates but emphasise their
reluctance to ease policy further.
Also, the overall trading activity was light in the region
owing to holidays in Singapore, India and Malaysia.
Sino-U.S. trade tensions, which have roiled global financial
markets for more than a year, would be reduced if the first
phase of a deal between the world's top two economies can be
signed next month in Chile.
On Friday, the U.S. Trade Representative's office and
China's Commerce Ministry said officials are "close to
finalising" some parts of a trade agreement after high-level
telephone discussions. Investors are also awaiting the developments from the
meetings late this week of the U.S. Federal Reserve and Bank of
Japan.
"A rate cut from the Fed looks a done deal this week as it
takes out more insurance against elevated external risks," ANZ
Research said in a note on Monday. "Forward policy guidance may
point to the Federal Open Market Committee taking some time out
to observe the impact of recent cuts."
The dollar index .DXY against a basket of six major
currencies stood at 97.849, near its highest in more than a
week.
The Korean won KRW=KFTC led gains on Monday, strengthening
as much as 0.4% to 1,168 against the dollar, its best intraday
gain in a week.
The Chinese yuan CNY=CFXS put on as much as 0.2% to touch
its strongest level in two weeks. The Taiwan dollar TWD=TP gained up to 0.2%, while the
Philippine peso PHP= and the Indonesian rupiah INR=IN
advanced slightly.
The Singapore dollar SGD= was almost unchanged in thin
offshore trading.
The Thai baht THB=TH weakened as much as 0.2% on the day
to 30.210 against the dollar after gaining for two consecutive
sessions.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0620 GMT
Currency Latest bid Previous day Pct Move
Japan yen 108.730 108.64 -0.08
Sing dlr 1.363 1.3628 +0.00
Taiwan dlr 30.562 30.594 +0.10
Korean won 1169.900 1173 +0.26
Baht 30.210 30.16 -0.17
Peso 51.160 51.2 +0.08
Rupiah 14020.000 14030 +0.07
Yuan 7.062 7.0647 +0.03
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 108.730 109.56 +0.76
Sing dlr 1.363 1.3627 -0.01
Taiwan dlr 30.562 30.733 +0.56
Korean won 1169.900 1115.70 -4.63
Baht 30.210 32.55 +7.75
Peso 51.160 52.47 +2.56
Rupiah 14020.000 14375 +2.53
Rupee 70.880 69.77 -1.57
Ringgit 4.185 4.1300 -1.30
Yuan 7.062 6.8730 -2.68