* Won touches two-week high
* Indian rupee extends gains; close to 3-week peak
* Philippine peso bucks trend
(Adds text, updates prices)
By Aby Jose Koilparambil
May 27 (Reuters) - Most Asian currencies rose on Monday,
underpinned by a softer dollar and after a warning from China's
top banking regulator against betting on the yuan, whose
stability is vital for its regional peers.
Although U.S.-China trade tensions remain the key driving
theme for markets across assets, emerging Asian currencies
started the week on a positive note as the dollar eased.
The greenback fell from a two-year high after orders for
U.S.-made capital goods contracted in further evidence that
manufacturing and the broader economy are slowing. The weaker-than-expected data, a closely-watched proxy for
business spending plans, drove the dollar lower and added to a
fall which began Thursday following a report that showed
manufacturing activity hit its lowest in almost a decade in May.
On Monday, the dollar index .DXY was trading slightly
weaker.
Meanwhile, China's banking and insurance regulator said on
Saturday it did not expect a persistent decline in the yuan
CNY=CFXS , while adding that "those who speculate and short the
yuan will for sure suffer heavy loss". The yuan rose as much as 0.2% to its highest in nearly two
weeks despite data on Monday showing profits for China's
industrial firms shrank in April as slowing manufacturing
activity halted the previous month's surge. Sources had told Reuters China's central bank would use
foreign exchange intervention and monetary policy tools to stop
the yuan weakening past the key 7-per-dollar level in the near
term. "The weaker U.S. durable goods orders data was a negative
for the dollar, which was helping the Asian currencies," said
Chang Wei Liang, forex strategist at Mizuho Bank.
Chang added that the Chinese authorities did not want the
weakness in the yuan to continue and if the unit's stability is
anchored by policymakers, that would see more strength in Asian
currencies.
The yuan has lost more than 2.3% against the dollar since
the festering China-U.S. trade dispute intensified earlier this
month.
The South Korean won KRW=KFTC was one among the major
gainers on the day, appreciating as much as 0.5% to touch a
two-week peak.
South Korean finance ministry and central bank officials too
had issued verbal warnings last week against disorderly currency
market movements as the won weakened to a 2-1/2-year low against
the dollar.
The Indian rupee INR=IN extended gains for a second
straight session, strengthening as much as 0.2% to its firmest
in nearly three weeks, after Prime Minister Narendra Modi's
ruling party retained power with a massive mandate in the
general elections.
The Taiwan dollar TWD=TP and the Thai baht THB=TH put on
up to 0.3%, while the Indonesian rupiah IDR=ID and the
Malaysian ringgit MYR=MY gained slightly.
Bucking the trend, the Philippine peso PHP= weakened as
much as 0.3% to 52.220 against the dollar.
The following table shows rates for Asian currencies against
the dollar at 0511 GMT.
CURRENCIES VS U.S. DOLLAR
Japan yen 109.460 109.29 -0.16
Sing dlr 1.373 1.3749 +0.11
Taiwan dlr 31.429 31.520 +0.29
Korean won 1184.000 1188.4 +0.37
Baht 31.780 31.83 +0.16
Peso 52.210 52.09 -0.23
Rupiah 14380.000 14385 +0.03
Rupee 69.500 69.53 +0.04
Ringgit 4.185 4.187 +0.06
Yuan 6.893 6.9005 +0.11
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 109.460 109.56 +0.09
Sing dlr 1.373 1.3627 -0.78
Taiwan dlr 31.429 30.733 -2.21
Korean won 1184.000 1115.70 -5.77
Baht 31.780 32.55 +2.42
Peso 52.210 52.47 +0.50
Rupiah 14380.000 14375 -0.03
Rupee 69.500 69.77 +0.39
Ringgit 4.185 4.1300 -1.30
Yuan 6.893 6.8730 -0.29