SINGAPORE, Sept 3 — Most emerging Asian currencies rebounded today as upbeat Chinese service activity in August lifted regional stocks and on hopes for an end to geopolitical tensions over Ukraine.

The dollar also eased from 14-month highs against a basket of major currencies with the euro gaining after Ukraine and Russia agreed on ceasefire. The dollar’s retreat helped emerging Asian currencies.

China’s yuan rose on dollar selling by local corporate even though the central bank fixed its daily guidance level at a three month-low.

Service sector activity in the world’s second-largest economy rebounded in August after a drop in July, two surveys showed.

India’s rupee rose on demand from a Japanese bank and other foreign lenders. The Thai baht advanced on stock inflows.

The Philippine peso recovered some of earlier losses as Manila shares jumped 1.4 per cent, well outpacing regional equity markets.

The South Korean won, however, ended the local trade lower as the government warned against further appreciation in the best performing emerging Asian currency so far this year. — Reuters