SINGAPORE: Most Asian currencies advanced on Tuesday with the dollar coming under pressure after investigators probing Russian meddling in the US election had charged President Donald Trump’s former campaign manager.

Federal investigators probing Russian interference in the 2016 US election charged Paul Manafort, Trump’s former campaign manager, and aide Rick Gates with money laundering on Monday.

“The scope of the investigation will likely widen. But at this stage, we have no idea if there’s a smoking gun or its all a tempest in a teapot,” Stephen Innes, senior trader at FX broker OANDA, said in a note.

Sentiment appears subdued as Trump contemplates his choice for the next Fed chair, which will influence the future pace of its rate hikes. Thus far, Jerome Powell, seen as less hawkish than fellow candidate John Taylor, remains in favour.

The dollar fell to a one-week low against the yen, while the dollar index, which measures the greenback against six rivals, was marginally higher.

The South Korean won led gains in the region, hitting its highest in two months.

The Indonesian rupiah was up slightly, on-track to post its third straight month of gains. Sentiment may also have been boosted by data out later on Monday showing that Indonesia saw foreign direct investment increase at a slightly faster pace in July-September than in the previous quarter.

The Taiwan dollar was 0.2 percent higher ahead of preliminary third-quarter economic growth data to be out later in the day.

A Reuters poll showed that Taiwan’s economy was expected to show growth for a sixth straight quarter in July-September and at a faster pace, boosted by tech exports thanks to a global economic upswing and recovering consumption.

The Thai baht rose 0.12 percent ahead of September factory output data due later in the day and October inflation data due in the next session.

Thailand’s headline inflation is expected to be little changed in October and still below the central bank’s target range, while September factory output growth was expected to slow, a Reuters poll found, giving policymakers room to keep monetary policy loose.

The baht was seen set to post its biggest monthly gain since July.

The South Korean won was up 0.4 percent, and looked set to break two straight monthly losses, while China’s yuan rose as much as 0.3 percent, its best one-day gain in three weeks.

Political sentiment was boosted when China’s Foreign Ministry said on Tuesday that China and South Korea had agreed at high-level talks to get their relations back on track.—Reuters