* Most currencies range-bound
* Yuan slips after U.S. imposes tariffs on Chinese imports
(Adds text, updates prices)
By Aditya Soni
July 6 (Reuters) - Most Asian currencies traded in thin
range on Friday, with investors anxious after U.S. sanctions on
some goods imported from China took effect, potentially setting
the world's two biggest economies on their way to a full-blown
The U.S. tariffs on $34 billion in Chinese imports took
effect at 0401 GMT. President Donald Trump has warned the United
States may ultimately target over $500 billion worth of Chinese
goods, an amount that roughly matches last year's total U.S.
imports from China.
The Chinese yuan, which has been battered by the trade
tensions, slipped 0.2 percent with Beijing having vowed to
immediately retaliate against U.S tarrifs.
"The implementation was well anticipated and the
implementation came with no additional surprise," said
Christopher Wong, a senior FX strategist with Maybank.
Escalating United States-China trade tension has created
doubts on whether the global growth that benefited regional
stocks last year could be sustained. Foreign investors sold
Asian equities for a fifth consecutive month in June.
Investors were also cautious ahead of U.S. nonfarm payrolls
data due later in the day.
U.S. employers were expected to continue their brisk hiring
in June while also increasing wages, which would reinforce
expectations of robust economic growth in the second quarter and
allow the Federal Reserve to continue raising interest rates.
The Indonesian rupiah slipped 0.3 percent and was
among the few currencies that weakened.
Indonesia's central bank expects a trade surplus in June
after noting a "significant" drop in imports last month, Bank
Indonesia official Nanang Hendarsah said on Friday.
Higher oil prices had inflated the country's imports bill in
April and May, leading to trade deficits that were larger than
The Thai baht and the Indian Rupee
strengthened 0.1 percent each.
"Thailand has a very large current account surplus which
does provide a buffer to the weakening we have seen in regional
currencies," said Khoon Goh, ANZ's head of Asia research.
The baht has been resilient in the face of challenging
trading conditions to be the region's second-best performer.
The rupee was bolstered by a fall in oil prices. India is
the world's third-biggest oil importer and higher oil prices
threaten to spur inflation and widen its fiscal deficit.
The South Korean won firmed 0.3 percent, while
the Singapore dollar ticked up 0.1 percent.
The following table shows rates for Asian currencies
against the dollar.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0540 GMT
Currency Latest bid Previous day Pct Move
Japan yen 110.740 110.61 -0.12
Sing dlr 1.364 1.3645 +0.04
Taiwan dlr 30.528 30.540 +0.04
Korean won 1115.400 1118.6 +0.29
Baht 33.190 33.23 +0.12
Peso 53.391 53.397 +0.01
Rupiah 14417.000 14380 -0.26
Rupee 68.893 68.95 +0.08
Ringgit 4.042 4.041 -0.02
Yuan 6.656 6.6371 -0.28
Change so far in 2018
Currency Latest bid End 2017 Pct Move
Japan yen 110.740 112.67 +1.74
Sing dlr 1.364 1.3373 -1.95
Taiwan dlr 30.528 29.848 -2.23
Korean won 1115.400 1070.50 -4.03
Baht 33.190 32.58 -1.84
Peso 53.391 49.977 -6.39
Rupiah 14417.000 13565 -5.91
Rupee 68.893 63.87 -7.29
Ringgit 4.042 4.0440 +0.05
Yuan 6.656 6.5069 -2.24
(Reporting by Aditya Soni in Bengaluru
Editing by Eric Meijer)