Most Asian currencies tread water on Tuesday after investors reined in the previous session's optimism about progress in Sino-US trade talks as markets awaited more cues on whether the conflict can be resolved.
Markets celebrated on Monday after US President Donald Trump said he would delay the deadline to increase tariffs on Chinese imports, but turned cautious after he added that a deal "could happen fairly soon, or it might not happen at all."
OCBC Bank said in a note to clients: "With much positivity baked in for now, we would remain watchful for any fading euphoria pending further news flow."
The Philippine peso slipped 0.4 percent, leading declines in the region, while the Chinese yuan and the Malaysian ringgit were marginally lower.
Investors are also looking to the Federal Reserve's latest views on monetary policy, as Chairman Jerome Powell will testify before the US Senate Banking Committee later on Tuesday.
The Singapore dollar moved fractionally sideways as the island's industrial production had its biggest shrinkage in two-and-a-half years in January, due to a further decline in electronics manufacturing.
Slowdown in Singapore's production follows a regional trend as Asian economies continue to feel the effects of trade disputes and slowing global growth.
The Indonesian rupiah gained as the oil prices slipped on Tuesday, which might reduce some pressure on the archipelago's large current-account and trade deficit.
The South Korean won firmed on the eve of the Hanoi summit between President Donald Trump and North Korean leader Kim Jong Un.
The rupee weakened as much as 0.5 percent in early trade as the country's military Air Force conducted air strikes on militant camps inside Pakistan, escalating tensions on their border.
Tension between the two nuclear-armed neighbours began to spiral following a Feb. 14 suicide bombing in Kashmir when 40 Indian paramilitary police were killed by a Pakistan-based militant group. New Delhi blamed Islamabad, which denies having a role in the attack.
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