* Asia FX slip after Trump vows "phenomenal" tax plan
* Upbeat Chinese trade data helps temper some Asia FX losses
(Adds text, updates prices)
SINGAPORE, Feb 10 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 U.S. 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 Feb. 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
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
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
"Still, Asian currencies seem to be pretty firm even as U.S.
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.
China's yuan weakened against the dollar on Friday, with
news the Trump administration is stepping up efforts to improve
U.S.-China relations, setting up a period of possible fresh
catalysts for the currency market.
Trump agreed to honour the United States' "One China" policy
during a phone call with Chinese President Xi Jinping, the White
House said late on Thursday.
Washington's acknowledgement of China's position that it has
sovereignty over self-ruled Taiwan comes amid increasing
tensions between the two nations, with Trump's threats while
campaigning to label China a currency manipulator keeping global
markets on edge.
On Friday, however, the yuan trades were relatively subdued,
and there was no notable impact on the markets from the upbeat
Chinese trade data either, traders said.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0612 GMT
Currency Latest bid Previous Pct Move
Japan yen 113.74 113.26 -0.43
Sing dlr 1.4213 1.4206 -0.05
Taiwan dlr 31.083 31.046 -0.12
Korean won 1150.30 1145.80 -0.39
Baht 35.05 35.00 -0.14
Peso 49.910 49.870 -0.08
Rupiah 13310 13300 -0.08
Rupee 66.93 66.85 -0.11
Ringgit 4.4440 4.4370 -0.16
Yuan 6.8779 6.8675 -0.15
far in 2017
Currency Latest bid End prev Pct Move
Japan yen 113.74 117.07 +2.93
Sing dlr 1.4213 1.4490 +1.95
Taiwan dlr 31.083 32.279 +3.85
Korean won 1150.30 1207.70 +4.99
Baht 35.05 35.80 +2.15
Peso 49.91 49.72 -0.38
Rupiah 13310 13470 +1.20
Rupee 66.93 67.92 +1.49
Ringgit 4.4440 4.4845 +0.91
Yuan 6.8779 6.9467 +1.00
(Reporting by Masayuki Kitano in SINGAPORE; Additional
reporting by Yena Park in SEOUL, Winni Zhou and John Ruwitch in
SHANGHAI; Editing by Richard Borsuk)