SINGAPORE, May 26 — China's yuan rose to a three-month high today, and the Malaysian ringgit firmed to its strongest in nearly two years after Opec and other oil producers agreed to keep output reduced for a further nine months, but most Asian currencies were directionless.

The yuan had jumped to its highest since March-end a day earlier as major state-owned banks sold US dollars in what some traders said was a show of strength after Moody's downgraded China's credit ratings.

There was also speculation that China may be adjusting the way it calculates the yuan's daily midpoint rate to tamp down volatility.

The latest gains left the yuan on track to post its best weekly performance since mid-January.

Malaysia's ringgit was on track for its sixth straight session of gains and by midday was standing about 1 per cent up for the week.

As an oil and gas producer, Malaysia was expected to benefit from an agreement by Opec and some other crude producers yesterday to extend supply cuts of 1.8 million barrels per day until the end of the first quarter of 2018.

Asian currencies had mostly gained after minutes from the Federal Reserve's last policy meeting showed policymakers favouring a gradual approach to rate hikes, but that rally faded.

The Thai baht was the biggest gainer in the region, adding 0.4 per cent against the US dollar, rising to its highest since July, 2015.

Yesterday's top gainers, the South Korean won and the Taiwan dollar both lost steam. The won, however, was still poised for its fourth straight week of gains.

Taiwan's markets were headed for a long weekend, with financial markets closed on Monday and Tuesday for a national holiday. — Reuters