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EM ASIA FX-Most currencies tick higher on Sino-U.S. trade deal optimism

Published 12/26/2019, 01:25 PM
Updated 12/26/2019, 01:32 PM
© Reuters.  EM ASIA FX-Most currencies tick higher on Sino-U.S. trade deal optimism
USD/SGD
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USD/IDR
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USD/PHP
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* China c.bank sets yuan midpoint at strongest in 4-1/2
months
* Singapore factory output unexpectedly falls in November
* Philippine peso top gainer in region with 0.3% rise

(Adds text, updates prices)
By Shreya Mariam Job
Dec 26 (Reuters) - Most Asian currencies firmed in year-end
trade on Thursday as comments from China boosted expectations of
Washington and Beijing signing a trade deal early in the new
year.
The Chinese Foreign Ministry on Wednesday said their
economic and trade teams were in close communication about
detailed arrangements for the Phase 1 deal's signing and other
follow-up work. On Tuesday, U.S. President Donald Trump said he and Chinese
President Xi Jinping would have a signing ceremony to sign the
deal agreed to this month.
Beijing has not yet confirmed specific components of the
deal that were released by U.S. officials, but a spokesman for
China's Commerce Ministry said last week the details would be
made public after the official signing.
The Chinese yuan CNY=CFXS , however, weakened 0.1% after
Wednesday's strong gains. The central bank lifted its official
midpoint prior to the market open, breaching a key threshold.
The Philippine peso PHP= firmed the most in the region,
strengthening 0.3%.
The South Korean won KRW=KFTC and the Taiwan dollar
TWD=TP strengthened 0.2% and 0.3%, respectively. Trade in
these export-oriented countries have taken a hit from the
prolonged tariff dispute between the world's top two economies.
Thereby, easing tensions between Washington and Beijing
supported the two currencies.
The Indonesian rupiah IDR= slipped as markets resumed
trading after a two-day break, with a rise in crude oil prices
weighing on the currency.
The Singapore dollar SGD= traded largely flat, with data
showing November industrial output unexpectedly fell 9.3% from a
year earlier because of steep declines in electronics and
pharmaceutical production.
"The wording of the deal and its impact on reducing broader
global trade uncertainties especially related to the electronics
sector will be crucial factors that determine whether the story
for Singapore's manufacturing sector will materially change,"
Mizuho said in a note.

CHINESE YUAN
The People's Bank of China set the official yuan midpoint
rate CNY=PBOC at 6.9801 per dollar, the strongest in over
4-1/2 months, to reflect strong gains made a day earlier.
Supported by year-end corporate dollar selling, the onshore
spot yuan strengthened against the dollar in holiday-thinned
trade on Wednesday, rising past the key seven-per-dollar level.


CURRENCIES VS U.S. DOLLAR
Change on the day at 0444 GMT
Currency Latest bid Previous day Pct Move
Japan yen 109.540 109.35 -0.17
Sing dlr 1.355 1.3546 -0.01
Taiwan dlr 30.110 30.203 +0.31
Korean won 1161.200 1163.9 +0.23
Baht 30.155 30.22 +0.22
Peso 50.660 50.82 +0.32
Rupiah 13970.000 13960 -0.07
Rupee 71.255 71.27 +0.01
Ringgit 4.134 4.135 +0.02
Yuan 6.994 6.9890 -0.07

Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 109.540 109.56 +0.02
Sing dlr 1.355 1.3627 +0.59
Taiwan dlr 30.110 30.733 +2.07
Korean won 1161.200 1115.70 -3.92
Baht 30.155 32.55 +7.94
Peso 50.660 52.47 +3.57
Rupiah 13970.000 14375 +2.90
Rupee 71.255 69.77 -2.08
Ringgit 4.134 4.1300 -0.10
Yuan 6.994 6.8730 -1.73

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