* S. Korean won firms 0.4% but set for first weekly loss in
six
* China yuan rises; PBOC injects 200 bln yuan to boost
liquidity
* Rupiah up as Indonesia swings to trade surplus
(Adds text, updates prices)
By Niyati Shetty
Nov 15 (Reuters) - Most Asian currencies firmed on Friday
after risk sentiment was buoyed by fresh optimism that a deal to
end a 16-month trade dispute between United States and China
will materialize soon.
White House economic advisor Larry Kudlow on Thursday said
the world's top economies were getting close to an agreement,
citing what he called very constructive talks with
Beijing. "Like any good showman, Kudlow is keeping markets warm,"
Vishnu Varathan, senior economist at Mizuho Bank, said in a
note, adding that his comment on the deal "coming down to the
short strokes" must be tantalizing as it suggests that the
finish line is within sight.
South Korea's won KRW=KFTC lead gains among its Asian
peers, strengthening as much as 0.4%. The unit was on track to
decline 0.8% for the week, snapping six straight weeks of gains.
The South Korean economy is relatively more sensitive to
developments in the trade war, given its reliance on tech
exports.
The yuan CNY=CFXS firmed up to 0.3% against the dollar,
but was poised to end five consecutive weeks of gains.
The People's Bank of China unexpectedly extended 200 billion
yuan through its medium-term lending facility on Friday, the
second time it has done so this month, while keeping the lending
rate unchanged. The liquidity injection comes a day after the country posted
a range of weak economic data, including faltering factory
output and investment growth.
The Indian rupee INR=IN gained 0.4% and the Philippine
peso PHP= added 0.3%.
Gains in the peso were supported by the country's central
bank holding rates unchanged at 4.00% on Thursday, after
surprisingly strong economic growth in the third quarter.
Malaysia's ringgit MYR= was marginally stronger, despite
data showing the economy grew 4.4% in the third quarter, its
slowest pace in a year.
The central bank, however, said growth will remain positive
and maintained its 2019 outlook.
RUPIAH FIRMS ON TRADE SURPLUS
The Indonesian rupiah IDR= was slightly firmer as
government data showed the country swing to a trade surplus in
October due to slower-than-expected drop in exports.
However, concerns about a fall in both exports and imports
weighed on growth outlook.
"For the time being, the rupiah remains well-supported by
financial market flows," ING said in a note.
"But should concern about the current account return to the
spotlight, the IDR may be pressured once more with Bank
Indonesia likely to revisit its current "accommodative"
stance".
The following table shows rates for Asian currencies against
the dollar at 0702 GMT.
CURRENCIES VS U.S. DOLLAR
Currency Latest bid Previous day Pct Move
Japan yen 108.580 108.39 -0.17
Sing dlr 1.361 1.3617 +0.05
Taiwan dlr 30.533 30.582 +0.16
Korean won 1166.600 1169.7 +0.27
Baht 30.210 30.205 -0.02
Peso 50.580 50.73 +0.30
Rupiah 14065.000 14080 +0.11
Rupee 71.715 71.97 +0.36
Ringgit 4.152 4.156 +0.10
Yuan 7.009 7.0200 +0.16
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 108.580 109.56 +0.90
Sing dlr 1.361 1.3627 +0.12
Taiwan dlr 30.533 30.733 +0.66
Korean won 1166.600 1115.70 -4.36
Baht 30.210 32.55 +7.75
Peso 50.580 52.47 +3.74
Rupiah 14065.000 14375 +2.20
Rupee 71.715 69.77 -2.71
Ringgit 4.152 4.1300 -0.53
Yuan 7.009 6.8730 -1.94