Most currencies rise as geopolitical concerns ease
Most Asian currencies rose on Wednesday as investor concerns eased about simmering geopolitical tensions though caution towards risky assets prevailed in the market.
Currencies were also helped by an overall softening in US treasury yields.
The 30-year yield touched near three-month lows on Tuesday as concerns about the upcoming French presidential elections and possible US military action against Syria and North Korea prompted safe-harbour demand.
The South Korean won crept into green after six straight sessions of losses on optimism that the geopolitical crisis won't snowball.
"They need to have elections by May 10, and a sense of political stability coming in means the won is a latent buying opportunity if geopolitics doesn't blow out," said Vishnu Varathan, a senior economist with Mizuho Bank.
"The markets therefore won't go aggressively short on this, because you do have some optimistic opportunists out there."
The Thai baht and the Singapore dollar got a lift from the yen's continued rally over the past three sessions on the back of safe-haven buying.
The Chinese yuan, however, was about 0.1 percent lower at 6.898 against the dollar.
Data released earlier in the day showed China's producer price inflation in March cooled for the first time in seven months as iron ore and coal prices tumbled.
Analysts, however, say they believe a bigger risk stems from Chinese authorities struggling to manage banking sector risks while they try to keep growth rate stable.
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