* Rupiah supported by tax amnesty inflows
* Singapore dollar, Taiwan dollar inch higher
* China posts trade deficit for first time in three years
(Adds text, updates prices)
By Patturaja Murugaboopathy
BENGALURU, March 8 (Reuters) - Most Asian currencies inched
higher on Wednesday, as the dollar struggled to gain traction
ahead of U.S. jobs data due later in the week.
The Singapore dollar and Taiwan dollar eked
out gains, supported by strength in their equity markets.
The Indonesian rupiah advanced on strong tax amnesty
inflows..
Data released on Tuesday showed that Indonesia's foreign
exchange reserves rose to $119.9 billion in February, the
highest since August 2011, helped by tax and energy export
revenues.
The Malaysian ringgit saw small declines on rising
U.S. Treasury yields, which look to drive increased selling in
Malaysian government bonds, according to analysts. The yield
spread between Malaysian 10-year government bonds and U.S.
10-year Treasuries narrowed to 1.62 percentage points, the
lowest in nearly three months.
The dollar was little changed as investors awaited Friday's
U.S. jobs report to take further cues from the market. The
10-day volatility of the dollar index, fell to 5.3 percent, the
lowest in four months.
"At the moment, most investors are looking for a rate hike,
from the U.S. Federal Reserve in March. But the question now is
whether it is a hawkish hike or a dovish hike. And I think the
non-farm payroll data on Friday will let us know about that,"
said Vaninder Singh, Asia economist at RBS, based in Singapore.
CHINESE YUAN
China's yuan was little changed on the day.
The currency barely reacted to data showing that China's
yuan-denominated trade balance posted a deficit for the first
time in three years in February, as a year-on-year jump in
yuan-denominated imports outpaced a rise in exports.
Data released on Tuesday showed that China's foreign
exchange reserves unexpectedly rose for the first time in eight
months in February, as a regulatory crackdown and weakness in
the dollar helped staunch capital outflows..
However, some analysts said the FX reserves showing only a
small gain still point towards significant capital outflow
pressures especially if U.S. Treasury yields rise further.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0528 GMT
Currency Latest bid Previous Pct
day Move
Japan yen 113.73 113.98 +0.22
Sing dlr 1.4101 1.4111 +0.07
Taiwan dlr 30.815 30.850 +0.11
Korean won 1145.50 1146.10 +0.05
Baht 35.16 35.08 -0.22
Peso 50.270 50.270 +0.00
Rupiah 13338 13346 +0.06
Rupee 66.64 66.68 +0.07
Ringgit 4.4480 4.4450 -0.07
Yuan 6.9030 6.9043 +0.02
Change so
far in 2017
Currency Latest bid End prev Pct
year Move
Japan yen 113.73 117.07 +2.94
Sing dlr 1.4101 1.4490 +2.76
Taiwan dlr 30.815 32.279 +4.75
Korean won 1145.50 1207.70 +5.43
Baht 35.16 35.80 +1.84
Peso 50.27 49.72 -1.09
Rupiah 13338 13470 +0.99
Rupee 66.64 67.92 +1.93
Ringgit 4.4480 4.4845 +0.82
Yuan 6.9030 6.9467 +0.63
(Reporting by Patturaja Murugaboopathy in Bengaluru; Editing by
Jacqueline Wong)