* Pre-holiday demand also helps China's yuan
* Onshore yuan hits highest since July 2019
* Taiwan dollar ticks up ahead of export data
(Adds text, updates prices)
By Rashmi Ashok
Jan 20 (Reuters) - Most Asian currencies ticked higher on
Monday, with China's yuan leading the pack on a firm midpoint
rate fix by the central bank and robust demand ahead of a
week-long New Year holiday.
The onshore yuan CNY=CFXS gained 0.2% to 6.85 against the
dollar, its strongest since early July.
"The strengthening of Chinese yuan continues to be an anchor
for Asian currencies... Seasonal demand for the yuan in light of
the Chinese New Year holidays has kept it resilient against the
greenback," wrote Jingyi Pan, a market strategist at IG.
The yuan may well sustain its strength in the early part of
the week, though some profit-taking towards the end would not
come as a surprise, Pan added.
Chinese markets will be closed between Jan. 24 and 30 on
account of the Lunar New Year.
Meanwhile, a status quo in a key lending benchmark rate for
the second month in a row, and positive sentiment over firm data
and a recently struck trade deal with the United States also
helped the market. The People's Bank of China set the midpoint rate CNY=PBOC
- onshore yuan can trade 2% on either side of the fixing - at a
six-month high prior to the open.
Riding the yuan's coattails, most regional currencies
managed to eke out small gains despite the dollar standing firm
against a basket of currencies .DXY at 0523 GMT.
The Taiwan dollar TWD=TP rose slightly ahead of December
export data due at 0800 GMT, and preliminary fourth-quarter GDP
numbers expected on Tuesday.
A Reuters poll showed export orders likely rose for the
first time in 14 months, amid signs of a rebound in demand for
electronic gadgets and fading concerns over the protracted
U.S.-China trade spat. Central bank meetings will also stay in focus across the
week. The Bank of Japan, the Bank Indonesia, and the Bank Negara
Malaysia are all expected to stand pat on rates, although their
commentaries will be closely watched for indications of further
cuts.
Meanwhile, the Malaysian ringgit MYR=MY inched 0.1% lower
as a diplomatic spat with India continued to threaten the
country's important palm oil exports.
Prices fell 9.5% last week after India effectively halted
imports from the world's second-biggest producer following a row
over criticisms by Malaysia's prime minister over India's new
citizenship law and actions in Kashmir. Elsewhere, the Indian rupee INR=IN and the Philippine peso
PHP= both shrugged off a jump in crude prices to stand little
changed.
The following table shows rates for Asian currencies against
the dollar at 0517 GMT.
CURRENCIES VS U.S. DOLLAR
Currency Latest bid Previous day Pct Move
Japan yen 110.180 110.14 -0.04
Sing dlr 1.347 1.3472 +0.02
Taiwan dlr 29.938 29.960 +0.07
Korean won 1158.200 1159.4 +0.10
Baht 30.390 30.38 -0.03
Peso 50.870 50.91 +0.08
Rupiah 13640.000 13630 -0.07
Rupee 71.080 71.08 +0.00
Ringgit 4.055 4.05 -0.12
Yuan 6.850 6.8606 +0.15
Change so far in 2020
Currency Latest bid End 2019 Pct Move
Japan yen 110.180 108.61 -1.42
Sing dlr 1.347 1.3444 -0.19
Taiwan dlr 29.938 30.106 +0.56
Korean won 1158.200 1156.40 -0.16
Baht 30.390 29.91 -1.58
Peso 50.870 50.65 -0.43
Rupiah 13640.000 13880 +1.76
Rupee 71.080 71.38 +0.42
Ringgit 4.055 4.0890 +0.84
Yuan 6.850 6.9632 +1.65