The won rose the most among Asian currencies against a steady US dollar on Tuesday, boosted by the return of capital inflows to South Korea. Investors wagered US-led attacks on Syria at the weekend would not escalate into a wider conflict in the Middle East, keeping the dollar stable.
The dollar index against a basket of six major currencies was effectively flat at 89.414. Among Asian currencies, the South Korean won gained about 0.6 percent.
"With regards to Asian net capital inflows, we are witnessing an attempted rebound in net bond inflows for South Korea," OCBC Bank FX Strategists Emmanuel Ng and Terence Wu wrote in a research note. Meanwhile, the Taiwan dollar rose for the first time in five sessions, firming as much as 0.15 percent, the most in more than two weeks. Taiwan's dollar had slipped as much as 0.33 percent on Monday to hit its weakest in more than two months.
Malaysia's ringgit firmed on Tuesday after ending a fourth consecutive session weaker on Monday. The Singapore dollar was a shade firmer, as was the Indonesian rupiah. India's rupee moved in the other direction, slipping about 0.1 percent. "In India, net equity inflows are moderating sharply...with the net positive inflow balance moderating lower," wrote the OCBC Bank strategists. The Philippine peso edged down 0.05 percent, a little less than the change seen in the Thai baht.
The baht slipped 0.06 percent, trading for the first time after markets re-opened following the Songkran Festival holidays. China's yuan weakened 0.1 percent, hurt by corporate demand for US dollars, with traders looking past US President Donald Trump's claims of China playing a "devaluation game".
Data out of Beijing showed China's economic growth slightly outdid expectations by maintaining an even 6.8 percent for the first quarter of 2018, although industrial output grew a more modest 6.0 percent in March from a year earlier, missing expectations. Growth in China's fixed-asset investment slowed to 7.5 percent in the first quarter, also below forecasts.