* Rupiah rises ahead of bi-weekly govt bond auction
* Rupee dips after Moody's ratings cut
* Higher crude prices support Malaysian ringgit
(Adds text, updates prices)
By Shriya Ramakrishnan
June 2 (Reuters) - Most Asian currencies gained on Tuesday,
buoyed by hopes for global economic recovery despite Sino-U.S.
tensions, while the Indonesian rupiah climbed more than 1% on
rising demand for government bonds ahead of a bi-weekly auction.
U.S. manufacturing activity eased off 11-year lows in May,
data showed on Monday, while China's May factory activity
unexpectedly returned to growth as strict measures to contain
the coronavirus outbreak were lifted, according to a private
business survey. Tensions between the world's two largest economies, however,
remained in focus as reports of an order from China's government
to halt U.S. soybean purchases raised concerns that a trade deal
between the two countries could be in jeopardy. "This could be a sign that China may be less willing to keep
to the Phase 1 of U.S.-China trade deal as the U.S. continues to
threaten China's sovereign hold over Hong Kong and Taiwan,"
Maybank analysts wrote in a note.
The trade-sensitive South Korean won KRW=KFTC was flat,
while the Singapore dollar SGD= firmed 0.2%.
The Chinese yuan CNY=CFXS inched up in onshore trade,
supported by a firmer-than-expected midpoint fix by the central
bank. CNY/
The Indian rupee INR=IN edged lower, reflecting the impact
of a ratings cut by Moody's, citing a prolonged period of slow
economic growth, rising debt and persistent stress in parts of
the financial system. Malaysia, a net oil exporter, saw its currency strengthen
MYR=MY 0.5% to 4.292 per dollar, helped by a rise in crude
prices ahead of a meeting by major producers on extending output
cuts. The ringgit was poised for a third straight day of gains.
The Thai baht THB=TH gained 0.4% during the session.
RUPIAH SURGES
The Indonesian rupiah IDR= advanced 1.1% to a more than
two-month high against the dollar as traders piled into
government debt, pushing yields on the benchmark 10-year bonds
ID10YT=RR down by 40 basis points as of Friday's last close.
Financial markets were closed for public holiday on Monday.
Indonesia's finance ministry is targeting to raise 20
trillion rupiah ($1.39 billion) from a bond auction https://www.djppr.kemenkeu.go.id/page/load/2802/rencana-lelang-surat-utang-negara-pada-hari-selasa-tanggal-2-juni-2020
later in the day to fund its 2020 state budget.
Demand for Indonesia's bonds, long a favourite with foreign
investors due to their high yields, has picked up. The most
recent debt auction conducted last month was more than three
times oversubscribed.
Foreigners purchased $572.96 million worth of Indonesian
bonds in the last two weeks, according to finance ministry data.
CURRENCIES VS U.S. DOLLAR
Change on the day at
0558 GMT
Currency Latest Previous Pct
bid day Move
Japan yen 107.690 107.58 -0.10
Sing dlr 1.405 1.4073 +0.16
Taiwan dlr 29.927 29.952 +0.08
Korean won 1224.80 1225 +0.02
0
Baht 31.550 31.68 +0.41
Peso 50.340 50.34 +0.00
Rupiah 14415.0 14575 +1.11
00
Rupee 75.563 75.54 -0.03
Ringgit 4.292 4.312 +0.47
Yuan 7.119 7.1290 +0.14
Change so far in 2020
Currency Latest End 2019 Pct
bid Move
Japan yen 107.690 108.61 +0.85
Sing dlr 1.405 1.3444 -4.31
Taiwan dlr 29.927 30.106 +0.60
Korean won 1224.80 1156.40 -5.58
0
Baht 31.550 29.91 -5.20
Peso 50.340 50.65 +0.62
Rupiah 14415.0 13880 -3.71
00
Rupee 75.563 71.38 -5.54
Ringgit 4.292 4.0890 -4.73
Yuan 7.119 6.9632 -2.18
($1 = 14,415.0000 rupiah)