Asian currencies slip

Asian currencies fell on Friday as the dollar gained a lift after President Donald Trump vowed to announce a "phenomenal" tax plan, renewing hopes for the possibility of pro-growth US fiscal policies. Losses for regional currencies were tempered by better-than-expected Chinese January trade data that pointed to an encouraging start for the world's second-largest economy and bodes well for others in Asia.
The Chinese trade data came against a backdrop of positive risk sentiment and gains in regional equities, said a trader for a Malaysian bank in Kuala Lumpur.
The South Korean won fell 0.4 percent to 1,150.03 per dollar, after slipping to 1,154.5 at one point, the won's weakest level since February 1.
A near-term focus for the won is Friday's summit between Trump and Japanese Prime Minister Shinzo Abe, which could have a significant influence on Japan's yen, sending ripples to other Asian currencies such as the won.
Most other Asian currencies also retreated, with the Malaysian ringgit slipping 0.2 percent against the greenback.
The dollar gained a boost after Trump promised a "phenomenal" tax plan in a White House meeting with airline executives on Thursday, although he offered no specifics while citing the need to a lower tax burden on businesses.
The White House said Trump plans to announce the most ambitious tax reform plan since the Reagan era in the next few weeks.
The comments by Trump provided a catalyst for the dollar's rise and led to a pullback in Asian currencies, said Masashi Murata, currency strategist for Brown Brothers Harriman in Tokyo.
"Still, Asian currencies seem to be pretty firm even as US bond yields have risen," Murata said.
Such resilience in Asian currencies stems from positive economic fundamentals, underpinned by decent growth in developed economies such as the United States, Murata said, adding that China's economy also seemed to be doing alright for now.