Renewable Energy

EM ASIA FX-Mixed cues on U.S.-China trade row keep Asian currencies in tight ranges

Credit: REUTERS/NAVESH CHITRAKAR

Most Asian currencies moved in tight, guarded ranges on Thursday as mixed signals on the U.S.-China trade front added to investors' jitters ahead of the G20 summit in Japan.

By Ambar Warrick

June 27 (Reuters) - Most Asian currencies moved in tight, guarded ranges on Thursday as mixed signals on the U.S.-China trade front added to investors' jitters ahead of the G20 summit in Japan.

U.S. President Donald Trump said on Wednesday that while a trade deal with the Chinese President Xi Jinping was possible during the summit, he was prepared to impose tariffs on virtually all remaining Chine imports.

Meanwhile, The South China Morning Post, citing sources, said that Washington and Beijing were laying out an agreement that would help avert the next round of tariffs. The news caused some buying in Asian equities.

On the currency front, the Chinese yuan CNY=CFXS was largely flat in anticipation of the meeting. The People's Bank of China set its daily mid-point at a slightly higher than expected fixing.

Industrial profits in the country rose in May, pointing to some strength in the import-heavy sector. However, analysts were unsure if the modest gains could last.

The Indian rupee INR=IN dropped 0.12% after Trump, on Twitter, cited India's recent tariff hike on U.S. imports as "unacceptable".

Earlier in the month, India had imposed higher retaliatory tariffs on 28 U.S. products after Washington ended its preferential trade treatment for the country.

The Taiwan dollar TWD=TP rose 0.23% to the dollar, driven mainly by inflows to the country's equities .TWII, which gained after three straight sessions of losses.

The Thai baht THB=TH, emerging Asia's best performer this year, inched slightly up against the dollar after the country's central bank held its benchmark interest rate.

The currency appeared to be unperturbed by the bank cutting its 2019 economic growth and exports forecast. The central bank even flagged that the baht's strength may not be in line with economic fundamentals.

With the last trading day of the quarter landing on Friday, Asian currencies will likely see some positioning for the next six months.

CURRENCIES VS U.S. DOLLAR

Change on the day at 0519 GMT

Currency

Latest bid

Previous day

Pct Move

Japan yen

108.080

107.77

-0.29

Sing dlr

1.355

1.3544

-0.04

Taiwan dlr

31.068

31.140

+0.23

Korean won

1157.500

1156.6

-0.08

Baht

30.760

30.775

+0.05

Peso

51.380

51.35

-0.06

Rupiah

14165.000

14170

+0.04

Rupee

69.233

69.15

-0.12

Ringgit

4.150

4.145

-0.12

Yuan

6.879

6.8803

+0.02

Change so far in 2019

Currency

Latest bid

End 2018

Pct Move

Japan yen

108.080

109.56

+1.37

Sing dlr

1.355

1.3627

+0.58

Taiwan dlr

31.068

30.733

-1.08

Korean won

1157.500

1115.70

-3.61

Baht

30.760

32.55

+5.82

Peso

51.380

52.47

+2.12

Rupiah

14165.000

14375

+1.48

Rupee

69.233

69.77

+0.78

Ringgit

4.150

4.1300

-0.48

Yuan

6.879

6.8730

-0.09

(Reporting by Ambar Warrick in Bengaluru; Editing by Kim Coghill)

((Ambar.Warrick@thomsonreuters.com; +91-80-6749-6625; Reuters Messaging: ambar.warrick.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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