Home »Money and Banking » World » Most Asian currencies slip; won, rupee top losers
Most Asian currencies inched down on Tuesday as the dollar steadied after three sessions of losses, helped by positive signals about ongoing Sino-US trade talks. US Commerce Secretary Wilbur Ross predicted Beijing and Washington could reach a "reasonable settlement" as officials from the world's two largest economies resumed talks in a bid to end a dispute that has roiled global markets.

As the talks' first day ended on Monday, Chinese importers made a third large purchase of US soybeans in the past month, Chicago-based traders said.

Barring any negative events, emerging market currencies could enter a comfortable period in the short term as expectations of no further US Federal Reserve rate hikes for a prolonged period is likely to keep the greenback under pressure.

"We look for the dollar to continue to bleed lower in the short term. The key 200-week moving average for the dollar at 95.90 may remain a pivot point," OCBC Bank said in a note on Tuesday.

Some investors are convinced the US will not raise interest rates this year over domestic growth worries after dovish statements by Fed Chairman Jerome Powell on Friday.

The Korean won declined as much as 0.6 percent after South Korea's Samsung Electronics Co Ltd, the world's biggest maker of smartphones and semiconductors, on Tuesday estimated a 29 percent drop in operating profit for October-December, its first decline in two years.

Higher oil prices put the region's net importers under pressure, with the Indian rupee weakening as much as 0.6 percent to 70.11 against the dollar.

Oil prices edged up on Tuesday, supported by hopes that for US-Chinese talks in Beijing, while the start of OPEC-led supply cuts also tightened markets.

The Indonesian rupiah, another currency impacted by oil prices, erased initial gains and slipped 0.2 percent.

The Thai baht weakened as much as 0.3 percent while the Chinese yuan shed 0.1 percent.

The Taiwanese dollar edged down 0.1 percent to 30.84 against the dollar.

Taiwan on Monday reported a 3 percent decline in December exports from a year earlier, reflecting the impact of the US-China trade war and weaker global demand for tech gadgets.

Later on Tuesday, Taiwan will report December inflation, which is expected to have cooled.

Copyright Reuters, 2019


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