Most Asian currencies barely move

Most emerging Asian currencies made small moves on Friday, in thin trade, as investors avoided sizable bets ahead of the holiday weekend, while the US dollar inched up marginally. The dollar index, which gauges the US currency against a basket of six major rivals, was up 0.1 percent at 93.402. For the week, it was down 0.5 percent.
The South Korean won, was the region's biggest gainer, quoted at 1,079.6 per dollar on the onshore settlement platform, 0.29 percent firmer than its previous close at 1,082.7. Traders said the won, on track for a second straight weekly gain, advanced as exporter sold dollars as December neared its end.
"Most Asian currencies are trapped in narrow ranges ahead of the long weekend and there is thin liquidity," said Christopher Wong, an FX strategist with Maybank. The Malaysian ringgit was the weakest regional currency on Friday morning, easing 0.3 percent against the dollar.
But Stephen Innes, head of trading in Asia-Pacific for Oanda in Singapore, is upbeat on the Malaysian currency's outlook. "Given the improving domestic and external landscape and a likely interest rate hike from the Central Bank of Malaysia in early 2018, the ringgit is emerging as one of Asia's most-promising currencies entering 2018," he said in a note on Friday.
The Taiwan dollar and the Indian rupee each gained 0.1 percent, with the later for its sixth consecutive weekly gain. The Indonesian rupiah advanced for a second day after Fitch Ratings on Thursday raised the country's sovereign rating to one notch about the lowest investment grad.
Fitch said the direction of macroeconomic and monetary policies has made Southeast Asia's largest economy resilient to external shocks. The rupiah is on track to strengthen this week, following three weekly declines.
The yuan inched up as much as 0.2 percent. "The expectations of more prudent monetary policy from the People's Bank of China and the anticipation of strong investment inflows in 2018 have the yuan basking in the limelight at year end," Oanda's Innes wrote.
The yuan was quoted at 6.5723 per US dollar, and was on track for its second week of gains. Prior to market opening on Friday, the People's Bank of China set the midpoint rate at 6.5821 per dollar, 26 pips or 0.04 percent weaker than the previous fix of 6.5795.