Dampened sentiment following suggestions that the Chinese delegation might cut the ministerial-level talks short and leave Washington on Thursday were offset by a Bloomberg report that the United States is weighing a currency pact with China as part of a partial deal.
Traders also took note of a New York Times report that Washington will issue licenses allowing some U.S. companies to supply non-sensitive goods to China's Huawei, as the dollar eased against a basket of major currencies <.DXY>. [FRX/]
"News of Huawei and the currency pact released together with the strong (yuan) fix, underscores the fact that PBoC (People's Bank Of China) is (ready) ...to give a strong guidance for the CNY as a potential pact with the U.S. could be at hand," a Maybank note said.
U.S. Federal Reserve meeting minutes released on Wednesday were largely in line with expectations and had little market impact.
The yuan
The Philippine peso firmed marginally. Data showed that August exports rose 0.6%, while imports slumped 11.8%, narrowing the country's August deficit.
Taiwan financial markets were closed for a holiday.
WON SLIPS
The Korean won
The won is the worst performer among Asian currencies this year.
The prolonged Sino-U.S. trade conflict and the dispute with Japan has dealt a huge blow to South Korea's trade-reliant economy. In September, exports slumped 11.7%, shrinking for the 10th consecutive month.
(Reporting by Shreya Mariam Job in Bengaluru; editing by John Stonestreet)
By Shreya Mariam Job