Most emerging Asian currencies edge up

Most Asian emerging market currencies rose against the dollar on Tuesday, as worries about economic issues eased while a widely-anticipated US interest rate hike next week has already been priced in by traders.
For market participants, the anticipated rate hike has been taken as a "virtual certainty, so they are not really batting an eyelid on that.. .it has been well-flagged, a 25 basis point move," said Vishnu Varathan, head of economics and strategy for Mizuho Bank in Singapore.
The US dollar was firm against the yen, and the dollar index was fractionally higher on Tuesday.
Helping markets in general were lower oil prices, plus reduced worries about a possible United States-China trade war and about political disruptions in Europe. The South Korean won and the Taiwan dollar were emerging Asia's best performers on the day.
The won was on track to firm for a fourth straight session, gaining 0.33 percent. The currency of export-reliant South Korea should benefit if next week's summit between President Donald Trump and North Korean leader Kim Jong Un goes well.
"I would like to think the risk sentiments have supported Asian currencies. There has been a whole slew of things, softer oil prices, USD yields keeling back," added Mizuho's Varathan.
"So the whole squeeze in the dollar-Asia complex has abated somewhat and certainly these currencies reflect that to some extent."
On Tuesday, the Singapore dollar and Thailand's baht edged up 0.13 percent and 0.03 percent, respectively.
India's rupee lost 0.15 percent, a move matched by the weakening of the Chinese yuan. The People's Bank of China set Tuesday's yuan mid-point at 6.4157 to the US dollar, weaker than the yuan's last close of 6.4027.
The Philippine peso firmed more than 0.1 percent as May inflation data made some economists expect a second rate hike in the future. Annual inflation last month was 4.6 percent, less than the 4.9 percent predicted in a Reuters poll, but still above the central bank's 2-4 percent target band.
Through Monday, the peso had lost more than 5 percent against the dollar this year.
The rupiah, which has lost about 2.2 percent in the year to date, slipped 0.06 percent on Tuesday, a day after data showed annual inflation slowed in May.
Bank Indonesia (BI) raised rates twice in May to staunch a fall in the rupiah. Some traders and analysts expect new BI Governor Perry Warjiyo to take proactive steps to support the rupiah. The next BI meeting is June 27-28.