SINGAPORE, Aug 31 — Most emerging Asian currencies slipped today after the dollar rose broadly as stronger-than-expected US economic data boosted expectations for a solid US jobs report.

The dollar touched a two-week high against the yen after US gross domestic product was revised higher to show a 3 per cent annual growth rate in the second quarter, due partly to robust consumer spending and strong business investment.

The ADP National Employment Report showed US private-sector employers hired 237,000 workers in August, the biggest monthly increase in five months, also boosting the greenback and driving expectations for a solid US August non-farm payrolls figure. 

"Markets are in a Charles Dickens kind of moment — it’s the best of times, it’s the worst of times. Up until the US numbers overnight, short dollar positioning had been reaching satiation,” said Emmanuel Ng, FX strategist at Oversea-Chinese Banking Corporation Ltd.

"The US data points provided the perfect excuse to pare prior dollar shorts, especially ahead of non-farm payrolls tomorrow. So currently, we are sitting in a somewhat surreal juncture, with risk appetite stronger but a strong dollar environment.” 

The Chinese yuan inched down after spiking to a 14-month high in the previous session, while the Korean won fell 0.2 per cent. 

Bucking the trend, the Singapore dollar was headed to snap two straight sessions of declines, edging up marginally, while the baht climbed 0.1 per cent.

Thailand’s annual industrial output rose in July, after a fall the previous month, helped by stronger car engine and electronic production suggesting the economic recovery is gaining momentum.

Markets in Malaysia was closed today for a holiday. 

China’s yuan

The yuan weakened slightly today, taking a breather from its 0.8 per cent rise against the US dollar so far this week, as the dollar rebounded after strong economic data.

Prior to the market open today, the People’s Bank of China raised its official yuan midpoint to 6.6010 per dollar, the strongest since June 24, 2016, likely reflecting gains in the spot yuan rate from a day earlier rather than any broad dollar moves, traders said.

In the spot market, the onshore yuan opened at 6.5974 per dollar and was changing hands at that same level at midday, eight pips softer than yesterday’s late session close but 0.05 per cent firmer than the midpoint.

South Korea’s won

The Sourth Korean won was little changed early today, shaking off a rebound in US stocks and a widely-predicted decision by the Bank of Korea to hold its benchmark rate at its record low of 1.25 per cent.

The won was at 1,124.5 to the dollar, almost unchanged from yesterday’s close of 1,124.2. — Reuters