Most Asian currencies ticked higher against a weaker dollar on Tuesday after encouraging data from an early-stage trial for a coronavirus vaccine lifted sentiment towards risky Asian assets.
US equities rallied on Monday after drugmaker Moderna Inc's experimental COVID-19 vaccine appeared safe and showed promise in a small group of healthy volunteers, according to very early data.
The dollar - usually in strong demand during economic distress - fell sharply as risk sentiment recovered, giving added benefit to relatively risky Asian currencies.
Some export-sensitive currencies notched firmer gains, with the South Korean won adding 0.5%. The Thai baht firmed 0.4%, while the Taiwan dollar added 0.15%.
"With more than a hundred vaccines currently under development around the globe, we may see more vaccine-related headlines swinging markets yet," Maybank analysts wrote in a note.
The Philippine peso rose 0.2%, while the Malaysian ringgit and the Indian rupee gained 0.4% and 0.2%, respectively. The Chinese yuan was flat, while the Singapore dollar eased.
The Indonesian rupiah held steady ahead of the central bank's policy decision due around 0700 GMT. A Reuters poll showed Bank Indonesia is expected to deliver this year's third rate cut as it steps up efforts to revive an economy hit by the coronavirus crisis.
However, a significant number of analysts in the poll expect rates to be held, given that BI Governor Perry Warjiyo has hinted that the central bank's priority of keeping the rupiah stable might prevent an early cut.
The rupiah has been the worst performer among Asian currencies this year, having shed 6.2% as of last close, followed closely by the baht.
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