Most Asian currencies subdued as US political uncertainty dampens sentiment

Most Asian currencies barely moved in holiday-thinned trade on Monday, as political uncertainty in the United States at a time of heightened anxiety over a global economic slowdown curbed risk appetite.

As a government shutdown in the world's largest economy looked likely to extend into the new year, most investors were reluctant to make any big bets.

"Sentiment has been dented by news of a government shutdown, as (President Donald) Trump and Democrat House Leaders were unable to agree on funding for the Mexican border wall," Mizuho Bank analysts said in a client note.

The Thai baht and Singapore dollar were the best performer with small gains of 0.20 percent each.

The Chinese yuan firmed 0.1 percent. Earlier in the day, the world's second largest economy announced adjustments in some import and export tariffs for 2019 in a bid to boost foreign trade as the economy slows.

The yuan has managed to largely stabilise in recent months after earlier coming under intense pressure on worries a weakening economy could trigger large-scale capital outflows. It is still down nearly 6 percent to the greenback so far this year.

Global slowdown fears have kept many of the Asian currencies under pressure this year, with capital-flow and deficit financing fears sending the likes of the Indonesian rupiah and Indian rupee sharply lower.

Export-reliant economies such as Taiwan and South Korea have also seen their currencies slide as investors fretted over the broadening impact of a Sino-US trade war.

The Indonesian currency markets were closed for a public holiday. The Indian rupee was off 0.1 percent.

Elsewhere, the Korean won led losers with a decline of 0.3 percent, while the Philippine peso slid 0.2 percent.

SINGAPORE DOLLAR

The Singapore dollar trimmed some of its gains earlier in the session after core inflation figure - a gauge more closely watched by policymakers - eased more than expected to 1.7 percent in November.

Monetary Authority of Singapore has tightened policy in both of its semi-annual meetings this year and expects the city-state's economy to expand steadily barring a setback to global growth from trade frictions between the United States and China.