Most Asian currencies eased off recent highs on Thursday as rising concerns over US economic policy dulled risk appetites, although a few regionals firmed against a weaker dollar. The Trump administration is pressing China to cut its trade surplus with the United States by $100 billion, adding to already simmering tensions sparked by the heavy tariffs slapped on steel and aluminium exported to the US
"Global risk appetite remained somewhat nervous on lingering US trade protectionism concerns," OCBC said in a research note. Rex Tillerson's dismissal as secretary of state also weighed on sentiment, sending the dollar even lower.
The Japanese yen, seen as a safe haven in troubled times, rose about 0.45 percent on the dollar. The South Korean won and Thai baht fell to the dollar. Both currencies had led gains on Wednesday.
South Korea's central bank chief said on Thursday his re-appointment to lead the Bank of Korea for a second four-year term would not mean an automatic acceleration of policy tightening. Thailand's economic growth has exceeded central bank expectations and recovery has become more broad-based, the central bank governor said on Wednesday.
That momentum was reflected in the baht, which gained substantially against the dollar in 2017. The Indonesian rupiah fell about 0.1 percent after the country posted a third straight monthly trade deficit in February.
Indonesia has a largely export-dependent economy, and a widening trade deficit could further undermine confidence in the rupiah, which is already one of the worst-performing regional currencies this year. The United States challenged what it said were Indian export subsidies at the World Trade Organization, saying they hurt US companies by letting Indian exporters sell goods more cheaply, prompting the Indian rupee to fall on increased dollar demand at home.
China's yuan inched up against the dollar and was on track for a fifth straight day of gains. The currency was underpinned by a stronger central bank fixing, as well as broader weakness in the dollar. The Philippine peso and the Taiwan dollar also eked out small gains.
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