(Adds details, updates prices)
By Rushil Dutta
April 12 (Reuters) - Most Asian currencies rose on Wednesday
as investor concerns eased about simmering geopolitical tensions
though caution towards risky assets prevailed in the market.
Currencies were also helped by an overall softening in U.S.
treasury yields.
The 30-year yield touched near three-month lows on Tuesday
as concerns about the upcoming French presidential elections and
possible U.S. military action against Syria and North Korea
prompted safe-harbour demand.
The South Korean won crept into green after six
straight sessions of losses on optimism that the geopolitical
crisis won't snowball.
"They need to have elections by May 10, and a sense of
political stability coming in means the won is a latent buying
opportunity if geopolitics doesn't blow out," said Vishnu
Varathan, a senior economist with Mizuho Bank.
"The markets therefore won't go aggressively short on this,
because you do have some optimistic opportunists out there."
The Thai baht and the Singapore dollar got a
lift from the yen's continued rally over the past three
sessions on the back of safe-haven buying.
The Chinese yuan, however, was about 0.1 percent
lower at 6.898 against the dollar.
Data released earlier in the day showed China's producer
price inflation in March cooled for the first time in seven
months as iron ore and coal prices tumbled.
Analysts, however, say they believe a bigger risk stems from
Chinese authorities struggling to manage banking sector risks
while they try to keep growth rate stable.
China's banking regulator told banks to conduct
"self-inspections" to determine whether they are using loopholes
in rules to avoid reporting non-performing loans, Reuters had
reported earlier citing official documents.
The Indian rupee was the biggest loser, down about
0.3 percent, wiping out minor gains made in the previous
session.
The rupee is overbought and the focus has shifted to less
heavily bought assets, analysts said.
"I don't see anything fundamental that has actually changed
within the domestic climate at all," said Stephen Innes, a
senior trader for FX broker OANDA.
EYES ON MAS
The Monetary Authority of Singapore (MAS) would keep its
exchange-rate based policy unchanged at its semiannual review
due on April 13, a Reuters survey predicted.
The survey also showed the government's advance estimate of
first-quarter GDP, due at the same time, is expected to show
that GDP shrank 1.9 percent from the previous three months on
annualised basis.
The Singapore dollar rose for a second straight session on
expectations that the MAS will assume a less dovish tone in its
meeting.
" 'hawkishly neutral' stance may position the SGD
(Singapore dollar) for more strength against its trade-basket,"
Mizuho Bank said in a note.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0612 GMT
Currency Latest bid Previous day Pct Move
Japan yen 109.510 109.6 +0.08
Sing dlr 1.401 1.4033 +0.14
Taiwan dlr 30.570 30.650 +0.26
Korean won 1143.200 1145.8 +0.23
Baht 34.521 34.561 +0.12
Peso 49.545 49.635 +0.18
Rupiah 13285.000 13280 -0.04
Rupee 64.713 64.49 -0.34
Ringgit 4.428 4.431 +0.07
Yuan 6.894 6.8903 -0.06
Change so far
Currency Latest bid End 2016 Pct Move
Japan yen 109.510 117.07 +6.90
Sing dlr 1.401 1.4490 +3.40
Taiwan dlr 30.570 32.279 +5.59
Korean won 1143.200 1207.70 +5.64
Baht 34.521 35.80 +3.70
Peso 49.545 49.72 +0.35
Rupiah 13285.000 13470 +1.39
Rupee 64.713 67.92 +4.96
Ringgit 4.428 4.4845 +1.28
Yuan 6.894 6.9467 +0.76
(Reporting by Rushil Dutta in Bengaluru; Editing by Subhranshu
Sahu)
Our Standards: The Thomson Reuters Trust Principles.