Emerging Markets - Most Asian FX lifted on potential Fed rate hike end; equities rise

JAKARTA (Reuters): Most emerging Asian currencies were bolstered by a weak US dollar on Tuesday, with the South Korean won leading the charge after softer US economic data signalled a potential pause in Federal Reserve rate hikes and spurred a positive trend in equities.

A slip in new US home sales overnight pushed the dollar to a three month-low, cementing bets that the Fed's aggressive campaign of raising rates likely peaked. Investors will look to the US Personal Consumption Expenditure (PCE) data out later this week for further cues on the rate trajectory, with a 25% chance of the Fed beginning to cut rates as early as March next year.