(Adds text, updates prices)
By Aby Jose Koilparambil
Oct 29 (Reuters) - The South Korean won KRW=KFTC led
gainers in the Asian currency markets for a second consecutive
session on Tuesday, amid hopes that the first phase of a trade
deal between the United States and China is in the making.
U.S. President Donald Trump said on Monday he expected to
sign a significant part of the trade deal with China ahead of
schedule, but did not elaborate on the timing. Leaders of the world's two biggest economies are working to
agree on the text for a "Phase 1" trade agreement announced by
Trump on Oct. 11. Trump has said he hopes to sign the deal with
China's President Xi Jinping next month at a summit in Chile.
The renewed optimism around a partial resolution to the
festering Sino-U.S. trade row reduced demand for safe haven
assets including the greenback.
The dollar index against a basket of six major currencies
.DXY was more or less flat after slipping off one-week highs
on Monday.
Also, investors remain focused on the U.S. Federal Reserve
meeting on Wednesday, when policymakers are expected to cut
interest rates by 25 basis points for the third time this year,
a move which is already priced in.
"The ongoing positive sentiment around the Sino-U.S. phase-1
deal is rubbing off on Asian currencies," said Khoon Goh, head
of Asia research at ANZ Banking Group (Singapore).
"The Korean won tends to do well on risk-on periods. Also,
during month-end period, exporters typically sell off dollars as
they convert export proceeds back into won and that's helping
the currency's strength."
The won gained as much as 0.5% to its strongest in nearly
four months, after adding up to 0.4% in the previous session.
The Indian rupee INR=IN resumed trading on a strong note
after Monday's holiday, gaining as much as 0.3% to touch its
firmest level in nearly a month.
The Chinese yuan CNY=CFXS , the Philippine peso PHP= and
the Taiwanese dollar TWD=TP gained as much as 0.2% each, while
the Indonesian rupiah IDR=ID and the Malaysian ringgit
MYR=MY firmed slightly.
The Thai baht THB=TH trimmed marginal losses to trade more
or less unchanged.
On Tuesday, Thailand's industry ministry said the country's
manufacturing production index in September fell a
worse-than-expected 4.7% from a year earlier, dragged down by
lower production of cars, petroleum and rubber. VS U.S. DOLLAR
Change on the day at 0615 GMT
Currency Latest bid Previous day Pct Move
Japan yen 108.980 108.94 -0.04
Sing dlr 1.362 1.3619 -0.02
Taiwan dlr 30.525 30.572 +0.15
Korean won 1165.300 1170.7 +0.46
Baht 30.190 30.19 +0.00
Peso 50.970 51.13 +0.31
Rupiah 14015.000 14020 +0.04
Rupee 70.728 70.88 +0.22
Ringgit 4.181 4.1845 +0.08
Yuan 7.060 7.0672 +0.11
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 108.980 109.56 +0.53
Sing dlr 1.362 1.3627 +0.04
Taiwan dlr 30.525 30.733 +0.68
Korean won 1165.300 1115.70 -4.26
Baht 30.190 32.55 +7.82
Peso 50.970 52.47 +2.94
Rupiah 14015.000 14375 +2.57
Rupee 70.728 69.77 -1.35
Ringgit 4.181 4.1300 -1.22
Yuan 7.060 6.8730 -2.64