(Adds text, updates prices)
By Patturaja Murugaboopathy
Dec 4 (Reuters) - The Chinese yuan led most Asian currencies
higher on Tuesday, though a prior day rally sparked by the
temporary U.S.-China trade truce slowed on questions over
whether the two sides can strike a durable deal.
Rising crude oil prices also undermined currencies of key
energy importers in the region.
While markets initially applauded the U.S.-China trade
truce, the lack of specificity in the temporary agreement struck
between presidents Donald Trump and Xi Jinping over the weekend
in Argentina has raised concerns about the fragility of the
"Details of the weekend Xi-Trump dinner remain scant from
Beijing and the White House. Even within the US administration,
we are seeing different interpretations, and attempts to dial
back on the expectations of the outcome," said Terence Wu,
currency strategist at OCBC Bank.
"Markets now run the risk of China eventually not
corroborating the declarations from the US front, and may now be
moderating the optimism it drew from the Xi-Trump outcome."
The South Korean won tacked on just 0.2 percent,
compared with its near 1 percent gain on Monday, while the
Taiwan dollar and the Singapore dollar also
Global crude oil prices rose for the second
successive day on Tuesday and weighed on the Indonesian rupiah
, Indian rupee and the Philippine peso
- the currencies of three major importers of oil in
Outperforming its regional peers, China's yuan
advanced 0.7 percent against the dollar, while the Malaysian
ringgit also climbed higher.
Meanwhile, foreigner investors have accelerated their buying
in Asian equities this month, data from regional exchanges
showed. They purchased $ 511 million worth of equities in
Philippines, Thai, Vietnam, Indonesian, Indian and South Korean
markets on Monday, adding to their total purchases of $2.5
billion in November.
"We are still favourable on Asian currencies as a whole into
the year end, on a strong portfolio inflow momentum, low crude
prices and positive sentiments towards EM Asia," said OCBC's Wu.
"We expect the Korean won and Taiwan dollar to mirror the
yuan movements, while the Indonesian rupiah and Indian rupee
may continue to outperform as they remain more attractive in
real yield terms."
The dollar index fell nearly quarter of percent on
the day due to a slump in U.S. Treasury yields.
The yield spread between the U.S. 2-year and 10-year, which
is seen as predictor of a U.S. recession, tightened to its
smallest since July 2007.
However, Saktiandi Supaat, head of FX research at Maybank
said such worries are overblown as the 2-year-10-year spread is
still in positive territory.
The following table shows rates for Asian currencies against
the dollar at 0528 GMT.
CURRENCIES VS U.S. DOLLAR
Change as of 0528
Currency Latest Previous Pct
bid day Move
Japan yen 113.060 113.65 +0.52
Sing dlr 1.365 1.3668 +0.14
Taiwan dlr 30.696 30.752 +0.18
Korean won 1107.70 1110.7 +0.27
Baht 32.700 32.76 +0.18
Peso 52.505 52.32 -0.35
Rupiah 14275.0 14235 -0.28
Rupee 70.405 70.45 +0.06
Ringgit 4.149 4.163 +0.34
Yuan 6.841 6.8855 +0.65
Change so far in
Currency Latest End 2017 Pct
Japan yen 113.060 112.67 -0.34
Sing dlr 1.365 1.3373 -2.02
Taiwan dlr 30.696 29.848 -2.76
Korean won 1107.70 1070.50 -3.36
Baht 32.700 32.58 -0.37
Peso 52.505 49.93 -4.90
Rupiah 14275.0 13565 -4.97
Rupee 70.405 63.87 -9.28
Ringgit 4.149 4.0440 -2.53
Yuan 6.841 6.5069 -4.89
(Reporting by Patturaja Murugaboopathy in Bengaluru; Additional
Reporting by Gaurav Dogra
Editing by Shri Navaratnam)