BENGALURU: Emerging Asian currencies lost steam on Tuesday, while equities posted smaller gains after a sharp rally in the last session, as a lack of details from a preliminary deal to end the Iran war kept investor optimism in check.
The Philippine peso snapped a six-session winning run to slip to 60.458 per dollar, while the Malaysian ringgit depreciated to 4.062 after a three-session gaining streak.
The South Korean won appreciated slightly to 1,511.4 per dollar in its third straight session of gains.
Initial optimism over the US-Iran memorandum of understanding aimed at ending their war gave way to caution, as markets focused on the lack of public details and the absence of a permanent truce.
Oil prices rebounded slightly after hitting a three-month low on Monday, with shippers still cautious about transiting the Strait of Hormuz.
Stock markets across emerging Asia rose slightly, led by South Korea’s 2.4 percent gain after a 5.2 percent jump on Monday. Equities in Taiwan recouped early losses to gain as much as 0.8 percent.
Malaysian equities rose 0.7 percent, while those in the Philippines and Singapore edged higher 0.7 percent and 0.5 percent, respectively. Markets in Indonesia were closed for a holiday.
Market focus is on a slew of central bank meetings this week, including the US Federal Reserve decision on Wednesday - the first under newly appointed chair Kevin Warsh.
Among regional central banks, analysts expect Bank Indonesia and Bangko Sentral ng Pilipinas to retain their hawkish biases.
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