Asian currencies subdued

Most Asian currencies traded flat to lower on Wednesday as rising Sino-US tensions over proposed security laws for Hong Kong prompted investors to latch on to the safety of the dollar.
US President Donald Trump said on Tuesday the United States would announce before the end of the week a strong response to China's planned national security legislation for Hong Kong.
Financial markets around the world have been caught this month between headlines on worsening Sino-US relations and optimism over the easing of coronavirus-induced restrictions in many countries.
A report on Beijing planning to expand the scope of its Hong Kong security legislation further pressured the Chinese yuan, which weakened as much as 0.3% to a more than eight-month low of 7.16 per dollar.
"Markets are concerned that China could allow for RMB depreciation to signal to the US that any revival of trade tensions will be counterproductive, if it results in a stronger USD against the RMB," said Wei-Liang Chang, FX and credit macro strategist at DBS.
The Singapore dollar dipped 0.2%, while the Malaysian ringgit firmed 0.2% as the market resumed trade after a long weekend.
The Philippines, which reported its largest single-day increase in new coronavirus infections on Tuesday, saw its currency ease 0.3%.
The central bank governor said remittances from millions of Filipinos living and working overseas could still grow from last year's $30 billion, but at a slower pace, which should help keep the peso stable.
The South Korean won gave up early gains to trade flat as market participants awaited the central bank's policy decision on Thursday.
A majority of analysts polled by Reuters expects the Bank of Korea to cut its policy rate to a record low, as the pandemic hits exports and prospects of a second wave of infections cloud the outlook.
The won has witnessed increased bouts of volatility and is the region's worst performer so far this year, with the economy being closed linked to global supply chains. As of last close, it was down 6.7% this year, followed closely by the Thai baht.
Analysts at ING expect the won to be the best performer in case of any good news on COVID-19 like a potential vaccine, and sold off the hardest in case of negative shocks such as a second wave of infections or renewed trade tensions.